Tag: economy

Fishing Below Economic Dams

Picture yourself fishing below a hydroelectric dam with 5 generators running. The water is flowing strong. I am fishing 200 yards below the dam and you are fishing 2 miles below. They just shut down two of the generators because they don’t have enough demand for electricity. The water is still flowing but at a

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Managing the Banking Relationship in a Growing Market

Business is rarely easy.  Even in a growth market, there are still challenges.  They are just different challenges than in a recession. Managing the Banking Relationship in a Growing Market In Houston, we are seeing companies who are continuing to grow and generate cash. As they seek to expand their operations and invest in infrastructure, they are running

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Fiscal vs Monetary Policy

Fiscal vs Monetary Policy What is Fiscal Policy? Fiscal policy is essentially how the government decides to collect and spend money to impact the economy. This is studied in Macroeconomics to better understand the relationship between the economy and governmental influence. The study of fiscal policy is useful in speculating the reaction to changes in

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Threat of New Entrants (one of Porter’s Five Forces)

See also: Porter’s Five Forces of Competition Supplier Power Buyer Bargaining Power Threat of Substitutes Intensity of Rivalry Complementors (Sixth Force) In Porters five forces, threat of new entrants refers to the threat new competitors pose to existing competitors in an industry. Therefore, a profitable industry will attract more competitors looking to achieve profits. If

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Supplier Power (one of Porter’s Five Forces)

See also: Supplier Power Analysis Porter’s Five Forces of Competition Threat of New Entrants Buyer Bargaining Power Threat of Substitutes Intensity of Rivalry Supplier Power Definition In Porter’s five forces, supplier power refers to the pressure suppliers can exert on businesses by raising prices, lowering quality, or reducing availability of their products. When analyzing supplier

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Stagflation

See Also: Economic Indicators Balance of Payments Supply and Demand Elasticity The Feds Beige Book What are the Twin Deficits? Stagflation Definition In economics, stagflation refers to the combination of stagnation and inflation. Stagnation refers to slowing economic growth or recession. It is a period of low gross domestic product and high unemployment. Inflation refers

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Mixed Economy

See Also: Economic Order Quantity (EOQ) Economic Production Run (EPR) Accounting Income vs. Economic Income Feasibility Study Economic Value Added Mixed Economy Definition The mixed economy definition is an economy where both the private market and the government control the factors of production. It is the most common form of economy that exists in the

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How to Hire a CFO Controller

How to Hire a CFO Controller When you need to hire a CFO Controller, there are a few steps that you need to take prior to the actually hiring. Start the ad placement process by first asking yourself a few questions about your company. How does the company describe itself, its culture and industry space? What

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Gross Domestic Product (GDP)

Gross Domestic Product (GDP) Definition The gross domestic product is the value of goods and services produced in a national economy usually over a year, but can be any period of time. Gross Domestic Product (GDP) Explained The GDP, defined is the primary indicator of a country’s economy over time. Gross domestic product history can

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What is Deflation?

What is Deflation? What is deflation? Deflation is the decline in the price for goods and services. It can also be referred to as the increase in the value of real money. In other words, it’s the value that the current currency will go up per unit of goods or services. Deflation Explained Deflation often

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Economic Indicators

See Also: Consumer Price Index Stagflation Balance of Payments What are the Twin Deficits? The Feds Beige Book Economic Indicators Definition Economic indicators are macroeconomic data that describe the condition of an economy. So, use them to determine whether an economy is prosperous and expanding or troubled and contracting. For example, a high unemployment rate

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Covariance

See Also: Direct Labor Variance Formulas Direct Material Variance Formulas Variance Analysis Financial Instruments Common Stock Definition Covariance Definition The covariance in finance is the degree or amount that two stocks or financial instruments move together or apart from each other. Meaning of Covariance The covariance means that investors have the opportunity to seek out

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