Search results
Results from the WOW.Com Content Network
Economic geographer David Harvey argues that the multi-stage process of capital accumulation reveals a number of internal contradictions: Step 1 – The power of labor is broken down and wages fall. This is referred to as "wage repression" or "wage deflation" and is accomplished by outsourcing and offshoring production. [1]
In economics and accounting, the cost of capital is the cost of a company's funds (both debt and equity), or from an investor's point of view is "the required rate of return on a portfolio company's existing securities". [1] It is used to evaluate new projects of a company.
From a firm's perspective, they must pay for the capital it obtains from others, which is called its cost of capital. Such costs are separated into a firm's cost of debt and cost of equity and attributed to these two kinds of capital sources. A firm's overall cost of capital, which consists of the two types of capital costs, is then determined ...
For premium support please call: 800-290-4726 more ways to reach us
Another reason for capital market imperfections associated with limited commitment is the ability of the borrower to renegotiate the terms of the contract ex post. Even though the contract is signed as a secured loan, because of the enforcement costs, the lender never gets the full payment in case of default. Ex post, the borrower always has ...
This budgeting rule argues that you should spend 50% of your income on what you need (rent or mortgage, utilities, food, insurance, etc.), 30% on what you want (vacations, luxury items, etc.) and ...
Accumulation can reach a point where the reinvestment of capital no longer produces returns. When a market becomes flooded with capital, a massive devaluation occurs. This overaccumulation is a condition that occurs when surpluses of devalued capital and labor exist side by side with seemingly no way to bring them together. [1]
Information is abundant and information goods are freely replicable. Goods such as music, software or databases do have a production cost, but once made can be copied infinitely. If the normal price mechanism of capitalism prevails, then the price of any good which has essentially no cost of reproduction will fall towards zero. [50]