Archives: Terms

Definition of Composite Commodity A composite commodity is a theoretical construct in economics that combines multiple individual goods or services into a single, aggregated item for analysis. This concept is particularly useful in simplifying complex economic models and analyses. By treating a group of diverse goods and services as a […]

Definition of Compliance Costs Compliance costs refer to all the expenses that a business incurs to adhere to laws, regulations, and standards. These costs include but are not limited to, administrative fees, expenditures related to legal counsel, auditing, purchasing of new software or technologies to ensure regulatory compliance, training employees […]

Definition of Competitiveness Competitiveness refers to the ability of a company, industry, or country to produce goods and services that meet the quality standards of the global market while maintaining or increasing the income of its people. At its core, competitiveness involves efficiency, productivity, innovation, and the ability to appeal […]

Definition of Competitive Tendering Competitive tendering is a procurement process whereby various suppliers or contractors are invited to submit bids to supply goods or services. The process is designed to encourage competition in the marketplace, with the aim of obtaining the best quality products or services at the lowest possible […]

Definition of Competitive Equilibrium Competitive equilibrium is a state in a market where the supply of goods matches demand, prices allow sellers and buyers to engage in mutually beneficial exchanges, and no economic forces are unaccounted for that would cause demand or supply to change. This equilibrium is crucial in […]

Definition of Competitive Economy A competitive economy is characterized by a high degree of market competition where numerous firms or individuals compete to sell their products and services. In such an economy, no single entity holds significant market power to set prices above competitive levels for an extended period. This […]

Definition of Competitive Devaluation Competitive devaluation refers to a policy adopted by countries to deliberately depreciate the value of their own currency against other currencies. The main purpose behind such a strategy is to gain an economic advantage on the international stage, particularly to boost exports. By making a country’s […]

Definition of Competitive Advantage Competitive advantage refers to the attributes that allow an organization to outperform its competitors. These advantages can be derived from various sources such as cost structure, product offerings, market dominance, and customer loyalty. Essentially, having a competitive advantage means possessing something unique that is hard for […]

Definition of Competition Policy Competition policy refers to laws, regulations, and government actions designed to promote competition and prevent monopolies and anticompetitive practices in the market. It aims to ensure fair competition for the benefit of consumers, foster innovation, enhance efficiency, and drive economic growth. This policy includes various measures […]

Definition of Competition Commission The Competition Commission is a regulatory body tasked with promoting and maintaining fair competition within an economy. It functions by investigating and addressing issues that hinder competitive markets, including monopolistic practices, cartels, and mergers that could significantly reduce market competition. These bodies are critical in ensuring […]