System of National Accounts

Cause-and-effect relationships between the most important sectors of economic activity are usually expressed through the System of National Accounts (SNA) developed by international organizations. The system of national accounts is a set of internationally recognized rules for accounting for economic activity, reflecting all major macroeconomic relations, including the interaction of national and international economies. The […]

Determination of equilibrium output by iterative method

In the standard economic scheme, the subordination of the end and the means is established as: Facility (production)(reason) Purpose (consumption, final demand)(result) where the means (the end of the lowest level) is independent, and the end (the goal of the higher level) is dependent on variables. In the intersectoral balance, the opposite attitude is taken: […]

Business Narrowing Strategy – Disintegration and Outsourcing

Single-industry companies, having abandoned integration, concentrate their activities on very narrow segments of the value chain, and the rest of the activities are transferred to independent external suppliers, in other words, transfer functions to outsourcing. Here it is very important to decide which links of the value chain to leave within the company, and which […]