The Cairns Group is a group of several countries who joined forces to campaign for the liberalisation of trade in agriculture. Members of the Cairns Group includes: Australia, Brazil Canada, Chile Colombia Fiji Hungary Indonesia Malaysia Philippines New Zealand and Uruguay These countries tend to have a strong agricultural sector and have suffered under the …
Definition of Call Money Money lent in the money markets which might be repaid at short notice. When temporarily short of cash, financial institutions may borrow call money; it is has a low interest rate, but, they might be required to pay back at short notice. Call money usually involves large amounts of money because …
The capital account measures transfer in assets and liabilities. For example, this may involve a Japanese firm building a factory in the UK. This is counted as a credit on the UK Capital Account. The Capital account can also involve the purchase of securities and liabilities, for example, a Japanese Banker buying UK Government securities. …
Definition of Capital accumulation This is the process of acquiring additional capital stock which is used in the productive process. Capital accumulation can involve Investment in physical fixed capital (e.g. factories, machines) Portfolio investment – purchase of bonds, shares and cryptocurrencies Investment in assets, such as housing. Measuring capital accumulation Capital accumulation can be calculated …
Definition of Capital Consumption This is the loss of capital equipment due to depreciation. Depreciation can occur due to the machines wearing out, getting lost or breaking down. Capital can also become obsolete through advances in technology. Capital consumption can also occur due to a shift in demand. E.g. rise in demand for computers made …
Capital depreciation refers to the decline in value of a capital asset. To give a simplified example, if a machine is bought for $10,000 but only has a useful lifespan of five years, then every year, the value of this machine will decline by $2,000. After three years, the machine is worth $4,000. There has …
Definition of Capital Expenditure. Capital expenditure is when a firm buys something that cannot be counted as a cost of a business, but reflects an expansion in a firms assets. Examples of capital expenditure include: The purchase of existing business. Purchase of capital goods from other suppliers, e.g. machines, computers, lighting systems. For tax purposes, …
Definition of Capital Flight – When a large number of people in a country move capital and assets from one country to another. Usually in response to a political and/or economic crisis. For example, on news that the banks of Iceland were bankrupt, many investors took their savings out of Iceland and into other countries. …