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What Are the Two Ways That an Unrelated Diversification Strategy

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Essay

What are the two ways that an unrelated diversification strategy can create value?


Definitions:

Simple Spending Multiplier

A ratio that estimates the impact on aggregate output (or income) of a change in autonomous spending.

Net Taxes

The total taxes paid by an individual or business minus any government subsidies or refunds received.

Federal Government Spending

Expenditure by the national government on goods, services, and public projects to influence a nation's economy.

Aggregate Demand Curve

A visual diagram that illustrates the connection between the general price level within an economy and the aggregate demand for products and services.

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