The primary purpose of a conglomerate merger is
a. to achieve economies of scale available through increased production of a single good.
b. to allow for decentralized management by spreading authority of a number of people spread throughout company locations.
c. to avoid adverse effects of business cycles through diversification.
d. to reduce competition by purchasing and then closing competing firms.
c. to avoid adverse effects of business cycles through diversification.
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If the banking sector borrows internationally and lends locally, how does this intensify a financial crisis?
What will be an ideal response?
Which of the following is a factor limiting saving in DVCs?
A. The lack of foreign aid and loans from the World Bank B. Governments control the banking system and set low interest rates C. The flight of private savings to investments in IACs where there is less risk D. Those who do save make their savings available only to their families who use it for consumption