Economic Network

DEFINITION of 'Economic Network'

A combination of individuals, groups or countries interacting to benefit the whole community. Economic networks use the various competitive advantages and resources of each member to increase the production and wealth of all the members. These economic networks could be static networks where members do not change, or dynamic ones in which the network is constantly changing as members are added or leave.

BREAKING DOWN 'Economic Network'

Mergers and acquisitions are based on the individual characteristics of each company as well the as synergies between the companies. Economic networks are also taken into account in M&As and are often treated as a resource that is difficult to reproduce. These networks can increase a company's ability to trade in a financially beneficial way. .

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