Economic Network

AAA

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.

INVESTOPEDIA EXPLAINS '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. .

RELATED TERMS
  1. Absolute Advantage

    The ability of a country, individual, company or region to produce ...
  2. Social Networking

    The use of internet-based social media programs to make connections ...
  3. Porter Diamond

    A model that attempts to explain the competitive advantage some ...
  4. Business Ecosystem

    The network of organizations – including suppliers, distributors, ...
  5. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it ...
  6. Soft Economic Moat

    A type of economic moat (or competitive advantage) that is based ...
RELATED FAQS
  1. What is considered an accretive acquisition?

    Accretive acquisitions result in a combined entity with higher earnings per share (EPS) than the legacy business of the acquirer. ... Read Full Answer >>
  2. What are some examples of successfully executed leveraged buyouts?

    In finance, a buyout refers to the purchase of a company's voting stock in which the acquiring party gains control of the ... Read Full Answer >>
  3. How can the problem of asymmetric information be overcome?

    Asymmetric information is inherent in most, if not all, markets. To take a basic example, a patient admitted to a hospital ... Read Full Answer >>
  4. What are some causes of structural unemployment?

    Structural unemployment is a form of unemployment caused by shifts in the economy. It occurs when there is an oversupply ... Read Full Answer >>
  5. How can I use value chain analysis to evaluate investment decisions?

    It is possible for an investor to use value chain analysis to evaluate an investment decision since analysis of a company's ... Read Full Answer >>
  6. What are the primary activities of Michael Porter's value chain?

    The primary activities of Michael Porter's value chain are inbound logistics, operations, outbound logistics, marketing and ... Read Full Answer >>
Related Articles
  1. Insurance

    The Government And Risk: A Love-Hate Relationship

    Though the U.S. government can help its citizens by subsidizing risky loans, the costs always come back to the taxpayers.
  2. Forex Education

    Making Sense Of The EUR/CHF Relationship

    The strong correlation between EUR and CHF currency pairs is undeniable. Find out what it means for forex traders.
  3. Forex Education

    The U.S. Dollar And The Yen: An Interesting Partnership

    In order to make the USD/JPY relationship more understandable, we must look at the yen in terms of treasury bonds.
  4. Entrepreneurship

    Small Business: It's All About Relationships

    Rather than be a jack-of-all-trades, an owner should rely on a network of trusted experts.
  5. Personal Finance

    Investment Clubs Pool Assets, Expertise

    Forming a network of other like-minded investors and professionals can bolster returns.
  6. Trading Systems & Software

    Neural Networks: Forecasting Profits

    Take a look at the algorithmic approach to technical trading - you may never go back!
  7. Stock Analysis

    Today's Top ETFs: Worth a Bet or Should You Pass?

    ETFs can be profitable and dangerous. Here's a list of today's most popular funds and what you should watch about them.
  8. Economics

    Explaining Marginal Propensity to Consume

    The marginal propensity to consume is a measure of how much consumption changes when income changes.
  9. Economics

    Understanding Product Lines

    A product line is a group of related products manufactured by the same company.
  10. Economics

    Explaining the Value Chain

    A model of how businesses receive raw materials as input, add value to the raw materials, and sell finished products to customers.

You May Also Like

Hot Definitions
  1. Standard Error

    The standard deviation of the sampling distribution of a statistic. Standard error is a statistical term that measures the ...
  2. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
  3. Unearned Revenue

    When an individual or company receives money for a service or product that has yet to be fulfilled. Unearned revenue can ...
  4. Trailing Twelve Months - TTM

    The timeframe of the past 12 months used for reporting financial figures. A company's trailing 12 months is a representation ...
  5. Subordinated Debt

    A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known ...
  6. International Financial Reporting Standards - IFRS

    A set of international accounting standards stating how particular types of transactions and other events should be reported ...
Trading Center