Definition of Bilateral Monopoly: A Bilateral Monopoly occurs in an industry where there is only one producer of a good and only one supplier. It means there is a monopsonist (buyer of labour) and a monopoly (single supplier) Examples of Bilateral Monopolies Coal Mining Monopsonist facing a Trade Union. In a town the coal mine …
Bilateral Trade is an agreement where two countries agree to have equal amounts of trade between each other. It means if one country has a trade deficit, it has to be made up so that the trade levels meet. This is inferior to multilateral trade where a country trades with numerous other countries and doesn’t …
Definition for bill of exchange: A bill of exchange is a short dated security used to finance foreign trade. It can be cashed at any time by the supplier Examples – bills of exchange In the Commonwealth almost all jurisdictions have codified the law relating to negotiable instruments in a Bills of Exchange Act, e.g. …
Government bills are short dated securities which the government use to finance its public debt. Treasury bills are issued by the Government. Bills don’t have an interest rate, but, allow the buyer to repurchase at a discount and this discount is the effective interest rates. Because bills can easily be traded in at any time, …
Definition of Black Market A ‘black market’ is a sector of the economy where transactions occur without the knowledge of the government and usually involve the breaking of certain laws such as filing proper tax returns. Other terms may include Underground market Hidden economy Grey market Unreported markets A black market can also refer to …
Black Monday refers to 19th October 1987, when share prices in New York, London and around the world fell by up to 25% in one day. The bear market lasted for a week and many feared this heralded a coming recession. But, the depression never materialised and stock markets recovered. Causes of Black Monday 1987 …
Black Thursday – October 24th 1929 signalled the start of the Wall Street Crash and the onset of the Great Depression which caused widespread economic turmoil and political upheaval. Black Thursday was the first large fall in share prices. But, was compounded by huge falls, a couple of days later on Monday 28th and Tuesday …
Black Wednesday refers to the date 16 September 1992, when the UK was forced out of the ERM. The Exchange rate mechanism was a key policy tool for the Conservative government. The logic of joining the ERM was that the chancellor Nigel Lawson believed that being in a fixed exchange rate Would help to reduce …