Venture Capital Funding can be of different kinds. Early stage funding could be at the stage of ideation, initial production and marketing. Expansion funding is done during commercial production, marketing and growth (For more information refer to the article – … Continued
CFA Exam
Stages of Venture Capital Funding
Venture Capital Funding is a form of private equity wherein the investor has a minority interest in the business. Typically it extends over a few years from ideation to exit. Let us take a case study of Simply Switch, an … Continued
Overview of Private Equity
An equity investment in a business, which is not traded on the capital market, is referred to as private equity. Individuals or private institutions invest in companies with growth potential, without managing the business on a day to day basis … Continued
Types of Market Structures
There are four basic market structures: perfect competition, monopoly, monopolistic competition and oligopoly. In a perfect competition market structure several firms are present who all produce identical products and are all sold at market price. The entry barriers to this … Continued
Role of International Organizations (IMF, World Bank, and WTO)
This article explains the role of the three important international organizations, namely, World Bank, the International Monetary Fund, and the World Trade Organization in facilitating trade. The excerpts of the functions and objectives are taken from their respective websites. International … Continued
Trading Blocs, Common Markets, and Economic Unions
Countries often enter into different types of agreements with respect to their trade policies. The objective of such agreements is to reduce the trade barriers among countries. These types of agreements are generally referred to as trade blocs or regional … Continued
Balance of Payments Accounts
To buy foreign goods and services, the firms and individuals need to buy the currencies of the foreign countries. Similarly they need to purchase the currency of domestic country while paying for goods and services to foreigners. The balance of … Continued
Trade and Capital Restrictions
Trade Restrictions In many countries governments will impose trade restrictions that will restrict foreign companies from supplying goods to these countries. Below are the main reasons for imposition of trade restrictions. Protect new industries: The government may want to protect … Continued
Ricardian and Heckscher-Ohlin Models of International Trade
There are several models that are used to analyze the dynamics of international trade. Two such models are Ricardian and Heckscher-Ohlin models. Let’s look at each of them in detail. Ricardian Model The focus is on comparative advantage. The model … Continued
Comparative Advantage Vs. Absolute Advantage
In international trade, companies can have absolute and comparative advantage in producing goods and services over other countries. A country has absolute advantage in producing goods if it is able to produce goods at a lower cost in terms of … Continued