Sunday, April 28, 2013

Economies and their various Sources

There are various kinds of economies in this world...let me see if  I can identify ten    of them;

This is a very often spoken about Economy. As the scale increases the cost of manufacturing per product comes down.This is the essence of  Fordism where larger quantity mass manufactured resulted in lesser per capita costs. Economies of Scale appears to be one of the larger ethos on which the economies of countries operate.Larger the population the better for a country that can benefit from scale economies.

This kind of an economy can be attributed to high capital involvements ...Instead of making capital investments any bulk equipment can be shared among few constituents.This creates economies.In my view point a family is an ideal setting where economies of scope can be seen in abundance. What is the meaning of Economy? it simply means you get in simple terms commercial benefits accruing due to certain specific environmental realities.


Such Economies exist from shapes and sizes of equipment's that are largely transitory in nature or in a kinetic situation. For example fuel economy of a car comes r is dependent on the shape of the car. Design might involve more complex situations and technologies and the word shape would just refer to peripheral appearance  All economies have a very distinct characteristic in that they are marginal every day benefits that add into a large scale outcome over-time.

Economies of relationships are the economies that follow as a result of long standing and harmonious relationships. Relationships can be of very different kinds but largely commences as a  transactional  one and finally graduating into a strategic one there by giving economic advantages of various sorts in the bargain largely evolving from the rules of comparative advantage. In simple terms if the relations between two countries is one of harmony there will be various kinds of economies that emerge from Relationships.


Routing by itself will single handedly dictate Economies in the world of today and it will only intensify with time. Increasingly humanity is on a trail of exploring shorter routes between points on the globe. The principle of routing is that a shorter route and a better route always exists between any two points. The world of tomorrow depends largely on Economies of route. Good routing improves temporal  and spatial proximity.

A  simple example of  Economies of Technology is the use of Deisel engine in a car as against petrol engine.Technologies and their research contributes to Economy..and technologies keep changing frequently.Appropriate Technology is a terminology coined to indicate any given technology that is apt under a given set of circumstances.

Methodology is a series of steps that are used in any process that involves "state" conversion. There can be many different methodologies for any given situation and some methodologies are more economical than the other given some environmental conditions at any point of time. the essence of "Economies of methodology" is that appropriate methodology must be utilized vis-a-vis the situation.


Design is a very important component of life and a logical activity and note that any design cn be improved and with that comes economies of various kinds like power saving and saving of space. Design requires ingenuity and is a formal branch of study and experience.

Any activity conducted at different geographical locations have different economies and returns by the very nature of the location and would add up to what is called  Economies of Geography.Over a period of time operations must be activated at zones of highest geographical economies.


Economies of Partnership is similar to a Doubles tennis match where the burden of executing some job is shared in some proportion between partners who work in unison and some understanding. Economics of Partnership is a symbiotic relationship and can exixt within organizations and among organizations.

Economies of Investments occur when the investments for a particular venture were created when the given conditions were not of high demand but demand picks up very quickly in a short period of time and the entry barrier for any new investor is very higher..there is Economies of Investment.There can be many examples of Economies of Investment.


There are many ways to look at Economies of Maturity. Whenever a product becomes old and is still operational with some minimum investments into its maintenance we have economies of maturity. A forty year old car which is running has a market value which is the fraction of a new car but the very fact that the car does the work it should be doing the Economies of maturity is the difference between the price of a new car and the price of the old car which is phenomenal.

No comments:

Post a Comment