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Introduction The recent times have witnessed an increase in the number of economists supporting environment preservation over economic gains. Experts have started realising that economic growth is perhaps not sustainable without caring about the environment. There have been discussions in the local as well as international levels to devise ways to generate growth that will [...]
Vertical Boundaries of Firms A vertical integration might seem to be the best available option to improve the profitability position of a firm. However, there are some constraints that the firms have to abide by; these constraints are known as vertical boundaries. The source of these boundaries is the dilemma that the firms face while [...]
Vertical Chain and Coordination As already pointed out, transaction cost economics is all about reducing the amount of transaction cost involved in the total cost of production. Putting it in another way, TCE implies those conditions which might be helpful in increasing the returns from investment for an entrepreneur. The chronology which the concept follows [...]
3. Minimising transaction cost Another key feature being included in transaction cost economics (TCE) is that about the methods that could effectively reduce the transaction costs incurred in the production process. One important way of doing so is through vertical integration of firms where the firms in different sectors are bound together in a single [...]
2. Determinants of transaction cost There are certain intangible elements upon which transaction costs depend, i.e., they might be considered as the factors which determine the amount of transaction costs that a particular firm has to bear. A basic knowledge of these elements fall under the perspectives of transaction costs economics (TCE). • Bounded Rationality [...]
Transaction Cost Economics The roots of transaction cost economics lie in minimisation of the cost of production or rather to instil scale economies in the production process. Modern day firms try to coordinate between the internal expenses of production and the cost of using various factor markets before finally fixing upon the appropriate conditions of [...]
Environmental Concerns From the last few years, Hong Kong Housing Authority has made conscious efforts to align with the environmental legislations. The authority implements a stringent control over its contractors to minimize the adverse impact on environment. However in 2008-09 there have been 12 cases of environmental disagreements regarding the activities of the contractors. Four [...]
Rental Affordability The median rent to income ratio is a well known presentation of the Hong Kong housing. The median rent to income ratio means that the half of the household’s rent to income ratio is below the figure and the rest has a rent to income ratio above the median value (Legislative Council, 2004). [...]
Introduction Hong Kong had been always known for its high home prices. However this does not mean that this territory has ever challenged New York or London (Shay, 2009). This Chinese metropolis, even, has never been able to challenge its fellow Asian, Tokyo. The Housing authority of Hong Kong has framed out the housing policies [...]
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