Like it or not, the economy permeates nearly everything around us. Any time goods and services are produced and sold, those actions contribute to the economy. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference ... of providing directed and concessional credit to certain sectors, ensuing “cross subsidization” among borrowers. To maintain spreads of banking sector, regulation of both deposit and lending were effected. This resulted not only in distorting the interest rate mechanism, but also adversely affected the viability and profitability of banks ... CROSS-SUBSIDIZATION. This strategy is mainly used to price international products. This is the case where one company is operating in more than one country. It can happen that the company makes super profits in one country hence be able to subsidize its operations in another country. This will enable the company to sale its products cheaper in a subsidized market hence a threat to competitor ... Investopedia further explained the concept of trade surplus as when a nation has a trade surplus; it has control over the majority of its currency. This causes a reduction of risk for another nation selling this currency, which causes a drop in its value, when the currency loses value, it makes it more expensive to purchase imports, causing an even a greater imbalance. A Trade surplus usually ... Select Spot Cross Rates (As of April 12, 2013) USD EUR GBP CHF JPY CAD USD - 1.3111 1.5344 1.0783 0.010162 0.9866 EUR 0.7627 - 1.1703 0.8224 0.007750 0.7525 GBP 0.6517 0.8545 - 0.7027 0.006622 0.6430 CHF 0.9274 1.2159 1.4230 - 0.009424 0.9150 JPY 98.41 129.028 151.005 106.114 - 97.091 Politics plays an important part in subsidization. In general, the left is more for having subsidized industries, while the right feels that industry should stand on its own without public funds” (Investopedia, 2015, p. 1). The above definition clearly indicates that the subsidy is a kind of free money in whatever form given to the public by Government. It is worth noting that the definition ...
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