레이블이 Historical Cost Concept인 게시물을 표시합니다. 모든 게시물 표시
레이블이 Historical Cost Concept인 게시물을 표시합니다. 모든 게시물 표시

2013년 11월 25일 월요일

오후 9:45

By Magdalene Dacruz

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About 'disadvantages of historical cost accounting'|... the dog's disadvantages: too much to defend, too small...] to a veritable plague of fleas through a long...both in the field—where it costs the enemy a daily fortune...







About 'disadvantages of historical cost accounting'|... the dog's disadvantages: too much to defend, too small...] to a veritable plague of fleas through a long...both in the field—where it costs the enemy a daily fortune...








Ｎｏｔｅ:               Ｒｅａｄ               ｔｈｅ               ｐｒｉｏｒ               ｉｎｓｔａｌｌｍｅｎｔｓ               ｏｆ               ｔｈｉｓ               ｅｓｓａｙ               ｓｅｒｉｅｓ               ｈｅｒｅ:               Ｐａｒｔ               Ｉ;               Ｐａｒｔ               ＩＩ;               Ｐａｒｔ               ＩＩＩ;               Ｐａｒｔ               ＩＶ.

Ｉｎ               Ｃｈａｐｔｅｒｓ               3               ａｎｄ               4               ｏｆ               Ａｎｔｉｔｒｕｓｔ:               Ｔｈｅ               Ｃａｓｅ               ｆｏｒ               Ｒｅｐｅａｌ,               Ｄｏｍｉｎｉｃｋ               Ｔ.

Ａｒｍｅｎｔａｎｏ               ａｒｇｕｅｓ               ａｇａｉｎｓｔ               ｔｈｅ               ｐｒｉｍａｒｙ               ｒｅａｓｏｎｓ               ｆｒｅｑｕｅｎｔｌｙ               ｇｉｖｅｎ               ｆｏｒ               ｔｈｅ               ｅｘｉｓｔｅｎｃｅ               ｏｆ               ａｎｔｉｔｒｕｓｔ               ｌａｗｓ.

Ｈｅ               ｃｒｉｔｉｃｉｚｅｓ               ｔｈｅ               ｐｅｒｆｅｃｔ               ｃｏｍｐｅｔｉｔｉｏｎ               ｍｏｄｅｌ,               ｔｈｅ               Ｎｅｏｃｌａｓｓｉｃａｌ               ｆｒｅｅ-ｍａｒｋｅｔ               ｍｏｎｏｐｏｌｙ               ｍｏｄｅｌ,               ａｎｄ               ｔｈｅ               ｉｄｅａ               ｔｈａｔ               ｆｒｅｅ-ｍａｒｋｅｔ               ｂａｒｒｉｅｒｓ               ｔｏ               ｅｎｔｒｙ               ｐｏｓｅ               ｐｒｏｂｌｅｍｓ               ｆｏｒ               ｃｏｎｓｕｍｅｒｓ.
               Ｐｒｏｂｌｅｍｓ               ｗｉｔｈ               Ｐｅｒｆｅｃｔ               Ｃｏｍｐｅｔｉｔｉｏｎ
               Ａｃｃｏｒｄｉｎｇ               ｔｏ               Ａｒｍｅｎｔａｎｏ,               "ｉｔ               ｉｓ               ｄｉｆｆｉｃｕｌｔ               ｔｏ               ｕｎｄｅｒｓｔａｎｄ               ｔｈｅ               ｒｅｌｅｖａｎｃｅ               [ｏｆ               ｐｅｒｆｅｃｔ               ｃｏｍｐｅｔｉｔｉｏｎ               ｔｈｅｏｒｙ]               ｉｎ               ａ               ｒｅａｌ               ｗｏｒｌｄ               ｏｆ               ｄｉｆｆｅｒｅｎｔｉａｔｅｄ               ｐｒｅｆｅｒｅｎｃｅｓ,               ｅｃｏｎｏｍｉｃ               ｕｎｃｅｒｔａｉｎｔｙ,               ａｎｄ               ｄｙｎａｍｉｃ               ｃｈａｎｇｅ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

33).

Ｔｈｅ               ｒｅａｌ               ｅｃｏｎｏｍｉｃ               ｐｒｏｂｌｅｍ               -               ｔｈｅ               ｐｒｏｂｌｅｍ               ｃｏｍｐｅｔｉｔｉｏｎ               ｍｕｓｔ               ｓｏｌｖｅ               -               ｉｓ               ｎｏｔ               ｈｏｗ               ｔｏ               ａｌｌｏｃａｔｅ               ｒｅｓｏｕｒｃｅｓ               ｇｉｖｅｎ               ｐｅｒｆｅｃｔ               ｉｎｆｏｒｍａｔｉｏｎ,               ｂｕｔ               ｒａｔｈｅｒ               ｏｎｅ               ｏｆ               "ｕｎｄｅｒｓｔａｎｄｉｎｇ               ｈｏｗ               ｔｈｅ               ｃｏｍｐｅｔｉｔｉｖｅ               ｍａｒｋｅｔ               ｐｒｏｃｅｓｓ               ｏｆ               ｄｉｓｃｏｖｅｒｙ               ａｎｄ               ａｄｊｕｓｔｍｅｎｔ               ｗｏｒｋｓ               ｔｏ               ｃｏｏｒｄｉｎａｔｅ               ａｎｔｉｃｉｐａｔｅｄ               ｄｅｍａｎｄ               ｗｉｔｈ               ｓｕｐｐｌｙ               ｉｎ               ａ               ｗｏｒｌｄ               ｏｆ               ｉｍｐｅｒｆｅｃｔ               ｉｎｆｏｒｍａｔｉｏｎ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

33).

Ｔｈｅ               ｐｅｒｆｅｃｔ               ｃｏｍｐｅｔｉｔｉｏｎ               ｍｏｄｅｌ               ａｓｓｕｍｅｓ               ａｗａｙ               ｔｈｉｓ               ｂａｓｉｃ               ｐｒｏｂｌｅｍ               ａｎｄ               ｉｓ               ｔｈｕｓ               ｉｒｒｅｌｅｖａｎｔ               ｔｏ               ｔｈｅ               ｒｅａｌ               ｗｏｒｌｄ.
               Ａｒｍｅｎｔａｎｏ               ｃｏｎｔｉｎｕｅｓ               ｂｙ               ｎｏｔｉｎｇ               ｔｈａｔ               ｔｈｅ               ｕｎｃｅｒｔａｉｎｔｙ               ｏｆ               ｒｅａｌ               ｍａｒｋｅｔｓ               ｏｆｔｅｎ               ｎｅｃｅｓｓｉｔａｔｅｓ               ｐｒｏｄｕｃｔ               ｄｉｆｆｅｒｅｎｔｉａｔｉｏｎ,               ａｄｖｅｒｔｉｓｉｎｇ,               ａｎｄ               ｉｎｔｅｒｆｉｒｍ               ｃｏｏｒｄｉｎａｔｉｏｎ               --               ｎｏｎｅ               ｏｆ               ｗｈｉｃｈ               ａｒｅ               ｉｎｄｉｃａｔｏｒｓ               ｔｈａｔ               ｃｏｍｐｅｔｉｔｉｏｎ               ｉｓ               ｂｅｉｎｇ               ｓｔｉｆｌｅｄ;               ｔｈｅｙ               ｓｉｍｐｌｙ               ｉｎｄｉｃａｔｅ               ｄｉｓｅｑｕｉｌｉｂｒｉｕｍ.
               Ｕｎｆｏｒｔｕｎａｔｅｌｙ,               ｍｏｓｔ               ｏｆ               ａｎｔｉｔｒｕｓｔ               ｅｎｆｏｒｃｅｍｅｎｔ               ｈａｓ               ｂｅｅｎ               ｇｒｏｕｎｄｅｄ               ｉｎ               ｔｈｅ               ｐｅｒｆｅｃｔ               ｃｏｍｐｅｔｉｔｉｏｎ               ｍｏｄｅｌ               -               ｔｈｅｒｅｂｙ               ｐｒｅｓｕｍｉｎｇ               ｔｈａｔ               ｏｕｔｐｕｔｓ               ｌｅｓｓ               ｔｈａｎ               ｔｈｅ               ｔｈｅｏｒｅｔｉｃａｌ               "ｐｅｒｆｅｃｔｌｙ               ｃｏｍｐｅｔｉｔｉｖｅ               ｏｕｔｐｕｔ"               ａｒｅ               ｓｏｍｅｈｏｗ               "ｒｅｓｔｒｉｃｔｅｄ."               Ｎｅｉｔｈｅｒ               ｔｈｉｓ               ｎｏｒ               ａｎｔｉｔｒｕｓｔ               ａｕｔｈｏｒｉｔｉｅｓ'               ｓｕｓｐｉｃｉｏｎ               ｏｆ               ａｄｖｅｒｔｉｓｉｎｇ               ａｎｄ               ｉｎｔｅｒｆｉｒｍ               ｃｏｏｒｄｉｎａｔｉｏｎ               ａｒｅ               ｗａｒｒａｎｔｅｄ               ｉｆ               ｔｈｅ               ｐｅｒｆｅｃｔ               ｃｏｍｐｅｔｉｔｉｏｎ               ｍｏｄｅｌ               ｉｔｓｅｌｆ               ｉｓ               ｆｌａｗｅｄ.
               Ａｓ               ａｎ               ａｌｔｅｒｎａｔｉｖｅ               ｔｏ               ｔｈｅ               ｐｅｒｆｅｃｔ               ｃｏｍｐｅｔｉｔｉｏｎ               ｍｏｄｅｌ,               Ａｒｍｅｎｔａｎｏ               ｐｒｏｐｏｓｅｓ               ｔｈｅ               Ｈａｙｅｋｉａｎ               ｖｉｅｗ               ｏｆ               ｃｏｍｐｅｔｉｔｉｏｎ               "ａｓ               ａｎ               ｅｎｔｒｅｐｒｅｎｅｕｒｉａｌ               ｐｒｏｃｅｓｓ               ｏｆ               ｄｉｓｃｏｖｅｒｙ               ａｎｄ               ａｄｊｕｓｔｍｅｎｔ               ｕｎｄｅｒ               ｃｏｎｄｉｔｉｏｎｓ               ｏｆ               ｕｎｃｅｒｔａｉｎｔｙ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

34).

Ｔｈｉｓ               ｉｍｐｌｉｅｓ               ｔｈａｔ               ｎｏ               ａ               ｐｒｉｏｒｉ               ｗａｙ               ｅｘｉｓｔｓ               ｔｏ               ｄｅｔｅｒｍｉｎｅ               ｗｈｅｔｈｅｒ               ｏｒ               ｔｏ               ｗｈａｔ               ｅｘｔｅｎｔ               ｒｉｖａｌｒｙ               ｏｒ               ｃｏｏｐｅｒａｔｉｏｎ               ａｒｅ               ａｐｐｒｏｐｒｉａｔｅ               ｉｎ               ａｎｙ               ｐａｒｔｉｃｕｌａｒ               ｍａｒｋｅｔ.

Ｆｕｒｔｈｅｒｍｏｒｅ,               ｉｎ               ｔｈｅ               ｃｏｕｒｓｅ               ｏｆ               ｔｈｅ               ｍａｒｋｅｔ               ｐｕｒｐｏｓｅ,               ｓｏｍｅ               ｆｉｒｍｓ               ｍａｙ               ｇａｉｎ               ｔｒｅｍｅｎｄｏｕｓｌｙ               ｉｎ               ｍａｒｋｅｔ               ｓｈａｒｅ,               ｗｈｅｒｅａｓ               ｏｔｈｅｒｓ               ｍａｙ               ｆａｉｌ               ａｎｄ               ｓｕｆｆｅｒ               ｌａｒｇｅ               ｌｏｓｓｅｓ.

Ｂｏｔｈ               ｐｈｅｎｏｍｅｎａ               ａｒｅ               ｎｅｃｅｓｓａｒｙ               ｆｏｒ               ｔｈｅ               ｄｉｓｃｏｖｅｒｙ               ｐｒｏｃｅｓｓ               ｏｆ               ｔｈｅ               ｍａｒｋｅｔ               ｔｏ               ｔａｋｅ               ｐｌａｃｅ.
               Ｐｒｏｂｌｅｍｓ               ｗｉｔｈ               Ｆｒｅｅ-Ｍａｒｋｅｔ               Ｍｏｎｏｐｏｌｙ               Ｔｈｅｏｒｙ
               Ａｒｍｅｎｔａｎｏ               ｉｓ               ｆｕｒｔｈｅｒｍｏｒｅ               ｓｋｅｐｔｉｃａｌ               ｏｆ               ｔｈｅ               "ａｃｔｕａｌ               ａｂｉｌｉｔｙ               ｏｆ               ａ               ｍｏｎｏｐｏｌｙ               ｆｉｒｍ,               ｏｒ               ａ               ｇｒｏｕｐ               ｏｆ               ｃｏｌｌｕｄｉｎｇ               ｆｉｒｍｓ,               ｔｏ               ｒｅｓｔｒｉｃｔ               ｔｈｅ               ｍａｒｋｅｔ               ｓｕｐｐｌｙ               ａｎｄ               ｒｅａｌｉｚｅ               ｍｏｎｏｐｏｌｙ               ｐｒｉｃｅｓ               ａｎｄ               ｐｒｏｆｉｔｓ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

35).

Ｔｈｅ               Ｎｅｏｃｌａｓｓｉｃａｌ               ｆｒｅｅ-ｍａｒｋｅｔ               ｍｏｎｏｐｏｌｙ               ｍｏｄｅｌ               ｓｔａｒｔｓ               ｂｙ               ａｓｓｕｍｉｎｇ               ｔｈａｔ               ａ               ｆｒｅｅ-ｍａｒｋｅｔ               ｓｏｌｅ               ｐｒｏｄｕｃｅｒ               ｒｅｓｔｒｉｃｔｓ               ｏｕｔｐｕｔ               ａｎｄ               ｔｈｅｎ               ｃｏｍｐａｒｅｓ               ｓｕｃｈ               ａ               ｒｅｓｔｒｉｃｔｅｄ               ｏｕｔｐｕｔ               ｗｉｔｈ               ｏｕｔｐｕｔ               ｕｎｄｅｒ               ｉｄｅａｌ               ｐｅｒｆｅｃｔ               ｃｏｍｐｅｔｉｔｉｏｎ               ｃｏｎｄｉｔｉｏｎｓ.

Ｈｏｗｅｖｅｒ,               Ａｒｍｅｎｔａｎｏ               ｒｅｃｏｇｎｉｚｅｓ               ｔｈａｔ               "ｔｈｅ               ａｔｏｍｉｓｔｉｃ               ｅｑｕｉｌｉｂｒｉｕｍ               ｏｕｔｐｕｔ               ｌｅｖｅｌ               [ｕｎｄｅｒ               ｐｅｒｆｅｃｔ               ｃｏｍｐｅｔｉｔｉｏｎ]               ｉｓ               ｎｅｉｔｈｅｒ               ｐｏｓｓｉｂｌｅ               ｎｏｒ               ｒｅｌｅｖａｎｔ               ａｎｄ               ｃａｎｎｏｔ               ｓｅｒｖｅ               ａｓ               ｔｈｅ               ｗｅｌｆａｒｅ               ｂｅｎｃｈｍａｒｋ               ｆｏｒ               ａｎｙ               ｃｏｍｐａｒｉｓｏｎ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

36).
               Ｆｕｒｔｈｅｒｍｏｒｅ,               ｔｈｅ               ｆｒｅｅ               ｍａｒｋｅｔ               ｗｉｌｌ               ｒｅｎｄｅｒ               ａｎｙ               ｍｏｎｏｐｏｌｉｓｔ'ｓ               ｏｒ               ｃａｒｔｅｌ'ｓ               ａｔｔｅｍｐｔｓ               ｔｏ               ｒｅｓｔｒｉｃｔ               ｍａｒｋｅｔ               ｏｕｔｐｕｔ               ａｎｄ               ａｒｔｉｆｉｃｉａｌｌｙ               ｒａｉｓｅ               ｐｒｉｃｅｓ               ｅｘｔｒｅｍｅｌｙ               ｓｈｏｒｔ-ｌｉｖｅｄ,               ａｓ               ｗｈｅｎ               ｔｈｅ               ｍｏｎｏｐｏｌｉｓｔ               ｒａｉｓｅｓ               ｐｒｉｃｅｓ               ａｂｏｖｅ               ｍａｒｇｉｎａｌ               ａｎｄ               ａｖｅｒａｇｅ               ｃｏｓｔｓ,               "ｓｔｒｏｎｇ               ｅｃｏｎｏｍｉｃ               ｉｎｃｅｎｔｉｖｅｓ               ｔｈｅｎ               ｅｘｉｓｔ               ｔｏ               ｅｘｐａｎｄ               ｃｕｒｒｅｎｔ               ｐｒｏｄｕｃｔｉｏｎ               ａｎｄ               ｔｏ               ｅｎｃｏｕｒａｇｅ               ｏｕｔｐｕｔ               ｂｙ               ｎｅｗ               ｆｉｒｍｓ,"               ｌｅａｄｉｎｇ               ｐｒｉｃｅｓ               ｔｏ               ｆａｌｌ               ａｎｄ               ｍｏｒｅ               ｃｌｏｓｅｌｙ               ａｐｐｒｏｘｉｍａｔｅ               ｃｏｓｔｓ               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

36).
               Ｉｆ               ａ               ｍｏｎｏｐｏｌｉｓｔ               ｔｒｉｅｓ               ｔｏ               ｄｒａｍａｔｉｃａｌｌｙ               ｌｏｗｅｒ               ｉｔｓ               ｐｒｉｃｅｓ               ｉｎ               ｏｒｄｅｒ               ｔｏ               ｄｅｔｅｒ               ｅｎｔｒｙ               ｂｙ               ｒｉｖａｌｓ,               ｔｈｉｓ               ｗｉｌｌ               ｉｎｃｒｅａｓｅ               ｓａｌｅｓ               ａｎｄ               ｔｈｕｓ               ｌｅａｄ               ｔｈｅ               ｍａｒｋｅｔ               ｔｏｗａｒｄ               ａ               ｃｏｍｐｅｔｉｔｉｖｅ               ｌｅｖｅｌ               ｏｆ               ｏｕｔｐｕｔ.

Ｉｆ               ｔｈｅ               ｆｒｅｅ-ｍａｒｋｅｔ               ｍｏｎｏｐｏｌｉｓｔ               ｅｎｇａｇｅｓ               ｉｎ               ｐｒｉｃｅ               ｄｉｓｃｒｉｍｉｎａｔｉｏｎ,               ｔｈｅ               ｏｕｔｐｕｔ               ｗｉｌｌ               ｌｉｋｅｗｉｓｅ               ｉｎｃｒｅａｓｅ,               ａｎｄ               ｔｈｅ               ａｄｄｉｔｉｏｎａｌ               ｕｎｉｔｓ               ｏｆ               ｏｕｔｐｕｔ               ｗｉｌｌ               ｂｅ               ｓｏｌｄ               ａｔ               ｌｏｗｅｒ               ｐｒｉｃｅｓ.

Ｍｏｒｅｏｖｅｒ,               ａｎ               ｉｎｅｆｆｉｃｉｅｎｔ               ｍｏｎｏｐｏｌｉｓｔ               ｂｙ               ｈｉｓ               ｖｅｒｙ               ｉｎｅｆｆｉｃｉｅｎｃｙ               ｉｎｖｉｔｅｓ               ｎｅｗ               ｅｎｔｒｙ               ａｎｄ               ｃａｎｎｏｔ               ｄｅｔｅｒ               ｉｔ               -               ｗｈｉｌｅ               ａ               ｍｏｒｅ               ｅｆｆｉｃｉｅｎｔ               ｍｏｎｏｐｏｌｉｓｔ               ｃａｎ               ｏｎｌｙ               ｄｅｔｅｒ               ｒｉｖａｌｓ               ａｓ               ａ               ｒｅｓｕｌｔ               ｏｆ               ｈｉｓ               ｅｆｆｉｃｉｅｎｃｙ,               ｉｎ               ｗｈｉｃｈ               ｃａｓｅ               ｔｈｅｒｅ               ｅｘｉｓｔｓ               ｎｏ               ｄｉｍｉｎｕｔｉｏｎ               ｏｆ               ｃｏｎｓｕｍｅｒ               ｗｅｌｌ-ｂｅｉｎｇ.
               Ａ               ｃａｒｔｅｌ               ｅｎｃｏｕｎｔｅｒｓ               ａｄｄｉｔｉｏｎａｌ               ｄｉｆｆｉｃｕｌｔｉｅｓ               -               ａｓ               ｗｅｌｌ               ａｓ               ａｌｌ               ｔｈｅ               ｏｎｅｓ               ｍｅｎｔｉｏｎｅｄ               ａｂｏｖｅ.

Ｉｔ               ｍｕｓｔ               ａｌｓｏ               ｅｆｆｅｃｔｉｖｅｌｙ               ｐｏｌｉｃｅ               ａｎｄ               ｃｏｏｒｄｉｎａｔｅ               ｉｔｓ               ａｔｔｅｍｐｔｓ               ｔｏ               ｒｅｓｔｒｉｃｔ               ｏｕｔｐｕｔ               ａｎｄ               ｒａｉｓｅ               ｐｒｉｃｅ.

Ｉｎ               ｓｈｏｒｔ,               "ｔｈｅｒｅ               ｉｓ               ｌｉｔｔｌｅ               ｒｅｌｉａｂｌｅ               ｅｖｉｄｅｎｃｅ               ｔｈａｔ               ｆｒｅｅ-ｍａｒｋｅｔ               ｃｏｌｌｕｓｉｏｎ               ｃａｎ               ａｌｌｏｗ               ｃｏｎｓｐｉｒｉｎｇ               ｆｉｒｍｓ               ｔｏ               ｃａｐｔｕｒｅ               ｍｏｎｏｐｏｌｙ               ｐｒｏｆｉｔｓ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

37).
               Ａｒｍｅｎｔａｎｏ               ｃｏｎｓｉｄｅｒｓ               ｔｈｅ               Ｎｅｏｃｌａｓｓｉｃａｌ               ｓｔａｎｄａｒｄ               ｏｆ               "ａｌｌｏｃａｔｉｖｅ               ｅｆｆｉｃｉｅｎｃｙ"               ｔｏ               ｂｅ               "ｃｏｎｔｒｉｖｅｄ               ａｎｄ               ｍｉｓｌｅａｄｉｎｇ"               -               ａｓ               ｉｔ               ｎｅｇｌｅｃｔｓ               ｔｈｅ               ｐｏｓｓｉｂｉｌｉｔｙ               ｔｈａｔ               "ａ               ｃｏｍｐｅｔｉｔｉｖｅ               ｐｒｏｃｅｓｓ               ａｌｗａｙｓ               ｏｐｅｒａｔｅｓ               ｕｎｄｅｒ               ｆｒｅｅ-ｍａｒｋｅｔ               ｍｏｎｏｐｏｌｙ"               ａｎｄ               "ｎｏ               ｆｉｎａｌ               ａｔｏｍｉｓｔｉｃ               ｅｑｕｉｌｉｂｒｉｕｍ               ｃｏｎｄｉｔｉｏｎ               ｃａｎ               ｅｖｅｒ               ｅｘｉｓｔ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

38).

Ｉｆ               ｔｈｅｓｅ               ａｒｅ               ｔａｋｅｎ               ｉｎｔｏ               ａｃｃｏｕｎｔ,               ｆｒｅｅ-ｍａｒｋｅｔ               ｍｏｎｏｐｏｌｉｅｓ               ｃｅａｓｅ               ｔｏ               ｂｅ               ａ               ｐｒｏｂｌｅｍ.
               Ｔｈｅ               Ｎｅｏｃｌａｓｓｉｃａｌ               ａｓｓｕｍｐｔｉｏｎ               ｒｅｇａｒｄｉｎｇ               "ｔｅｃｈｎｉｃａｌ               ｉｎｅｆｆｉｃｉｅｎｃｙ"               ｉｎ               ａ               ｆｒｅｅ-ｍａｒｋｅｔ               ｍｏｎｏｐｏｌｙ               ｓｉｔｕａｔｉｏｎ               ｉｓ               ｓｉｍｉｌａｒｌｙ               ｆｌａｗｅｄ               -               ａｓ               ｉｎ               "ａｎｙ               ｓｅｒｉｏｕｓ               ａｔｔｅｍｐｔ               ｔｏ               ｍｏｎｏｐｏｌｉｚｅ               ｓｏｍｅ               ｆｒｅｅ               ｍａｒｋｅｔ,               ｂｕｓｉｎｅｓｓ               ａｒｅ               ｆａｒ               ｍｏｒｅ               ｌｉｋｅｌｙ               ｔｏ               ｌｏｗｅｒ               ｃｏｓｔｓ               ｔｈａｎ               ｔｈｅｙ               ａｒｅ               ｔｏ               ｒａｉｓｅ               ｔｈｅｍ,               ａｎｄ               ｔｏ               ｅｘｐａｎｄ               ｒａｔｈｅｒ               ｔｈａｎ               ｄｅｃｒｅａｓｅ               ｐｒｏｄｕｃｔｉｏｎ.

Ｔｈｅ               ｍｏｓｔ               ｅｆｆｅｃｔｉｖｅ               ｗａｙ               ｔｏ               ｇａｉｎ               ａｎｄ               ｈｏｌｄ               ａ               ｆｒｅｅ-ｍａｒｋｅｔ               ｍｏｎｏｐｏｌｙ               ｐｏｓｉｔｉｏｎ               ｉｓ               ｔｏ               ｂｅ               ｍｏｒｅ               ｅｆｆｉｃｉｅｎｔ               ｔｈａｎ               ｒｉｖａｌｓ               ｏｒ               ｐｏｔｅｎｔｉａｌ               ｒｉｖａｌｓ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

38).

Ｆｕｒｔｈｅｒｍｏｒｅ,               Ａｒｍｅｎｔａｎｏ               ｂｅｌｉｅｖｅｓ               ｉｔ               ｉｓ               ｉｌｌｅｇｉｔｉｍａｔｅ               ｔｏ               ｃｏｎｓｉｄｅｒ               ｔｈｅ               ｃｏｓｔｓ               ｏｆ               ｐｒｏｄｕｃｔ               ｄｉｆｆｅｒｅｎｔｉａｔｉｏｎ               ａｓ               ｉｎｃｒｅａｓｅｄ               ｃｏｓｔｓ               ｕｎｄｅｒ               ｆｒｅｅ-ｍａｒｋｅｔ               ｍｏｎｏｐｏｌｙ,               ｓｉｎｃｅ               ｄｉｆｆｅｒｅｎｔｉａｔｅｄ               ｐｒｏｄｕｃｔｓ               ａｒｅ               ｆｕｎｄａｍｅｎｔａｌｌｙ               ｄｉｆｆｅｒｅｎｔ               ｆｒｏｍ               ｈｏｍｏｇｅｎｅｏｕｓ               ｐｒｏｄｕｃｔｓ               ａｎｄ               ｔｈｕｓ               ｃａｎｎｏｔ               ｂｅ               ｃｏｍｐａｒｅｄ               ｔｏ               ｔｈｅｍ.
               Ｔｈｅ               Ｓｔａｎｄａｒｄ               Ｏｉｌ               Ｃａｓｅ
               Ｔｈｅ               ｆａｃｔｓ               ｓｕｒｒｏｕｎｄｉｎｇ               ｔｈｅ               1911               Ｓｔａｎｄａｒｄ               Ｏｉｌ               Ｃａｓｅ               ａｒｅ               ｆｒｅｑｕｅｎｔｌｙ               ｍｉｓｕｎｄｅｒｓｔｏｏｄ.

Ｓｔａｎｄａｒｄ               Ｏｉｌ               ｎｅｖｅｒ               ａｃｔｅｄ               ｔｏ               ｔｈｅ               ｄｅｔｒｉｍｅｎｔ               ｏｆ               ｃｏｎｓｕｍｅｒｓ;               ｑｕｉｔｅ               ｔｈｅ               ｃｏｎｔｒａｒｙ,               ｉｔｓ               ｔｒｅｍｅｎｄｏｕｓ               ｅｆｆｉｃｉｅｎｃｙ               ｂｒｏｕｇｈｔ               ａｂｏｕｔ               ｉｔｓ               ｆａｓｔ               ｇｒｏｗｔｈ               ａｎｄ               ａｂｉｌｉｔｙ               ｔｏ               ｇａｉｎ               ａ               ｌａｒｇｅ               ｍａｒｋｅｔ               ｓｈａｒｅ               ｉｎ               ｏｉｌ.

Ｓｔａｎｄａｒｄ               Ｏｉｌ'ｓ               ａｃｔｉｖｉｔｉｅｓ               ｌｅｄ               ｔｏ               ｔｒｅｍｅｎｄｏｕｓ               ｄｒｏｐｓ               ｉｎ               ｃｏｎｓｕｍｅｒ               ｐｒｉｃｅｓ;               Ａｒｍｅｎｔａｎｏ               ｎｏｔｅｓ               ｔｈａｔ               "ｐｒｉｃｅｓ               ｆｏｒ               ｋｅｒｏｓｅｎｅ               ｆｅｌｌ               ｆｒｏｍ               30               ｃｅｎｔｓ               ａ               ｇａｌｌｏｎ               ｉｎ               1869               ｔｏ               9               ｃｅｎｔｓ               ｉｎ               1880,               7.4               ｃｅｎｔｓ               ｉｎ               1890,               ａｎｄ               5.9               ｃｅｎｔｓ               ｉｎ               1897"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

41).

Ｔｈｅ               ｍａｒｋｅｔ               ｃｏｎｔｉｎｕａｌｌｙ               ｒｅｍａｉｎｅｄ               ｏｐｅｎ               ｔｏ               ｃｏｍｐｅｔｉｔｏｒｓ,               ａｎｄ               Ｓｔａｎｄａｒｄ               Ｏｉｌ'ｓ               ｍａｒｋｅｔ               ｓｈａｒｅ               ａｃｔｕａｌｌｙ               ｆｅｌｌ               ｆｒｏｍ               85%               ｉｎ               1890               ｔｏ               64%               ｉｎ               1911               -               ｂｙ               ｗｈｉｃｈ               ｔｉｍｅ               Ｓｔａｎｄａｒｄ               Ｏｉｌ               ｈａｄ               ｏｖｅｒ               147               ｃｏｍｐｅｔｉｔｏｒｓ.
               Ｆｕｒｔｈｅｒｍｏｒｅ,               ｔｈｅ               ｃｏｕｒｔｓ               ｎｅｖｅｒ               ｆｏｕｎｄ               Ｓｔａｎｄａｒｄ               Ｏｉｌ               ｇｕｉｌｔｙ               ｏｆ               ｅｉｔｈｅｒ               ｒｅｓｔｒｉｃｔｉｎｇ               ｏｕｔｐｕｔ               ｏｒ               ｒａｉｓｉｎｇ               ｐｒｉｃｅｓ.

Ｒａｔｈｅｒ,               ｔｈｅｙ               ｓｉｍｐｌｙ               ｒｕｌｅｄ               ｔｈａｔ               Ｓｔａｎｄａｒｄ               Ｏｉｌ'ｓ               ｈｏｌｄｉｎｇ               ｃｏｍｐａｎｙ,               Ｓｔａｎｄａｒｄ               Ｏｉｌ               ｏｆ               Ｎｅｗ               Ｊｅｒｓｅｙ               ｗａｓ               "ａ               ｃｏｎｔｒａｃｔ               ｏｒ               ｃｏｍｂｉｎａｔｉｏｎ               ｉｎ               ｒｅｓｔｒａｉｎｔ               ｏｆ               ｔｒａｄｅ"               ａｎｄ               ｔｈｕｓ               ｏｕｔｌａｗｅｄ               ｂｙ               ｔｈｅ               Ｓｈｅｒｍａｎ               Ａｃｔ;               ｔｈｅｒｅｆｏｒｅ,               ｔｈｅ               ｃｏｕｒｔｓ               ｒｕｌｅｄ               ｔｏ               ｄｉｓｓｏｌｖｅ               ｔｈｅ               ｃｏｍｐａｎｙ.

Ａｌｔｈｏｕｇｈ               ｔｈｅ               ｃｏｕｒｔ               ｏｓｔｅｎｓｉｂｌｙ               ａｐｐｌｉｅｄ               ｔｈｅ               ｒｕｌｅ               ｏｆ               ｒｅａｓｏｎ               ｔｏ               ｔｈｉｓ               ｃａｓｅ,               "ｉｔ               ｉｓ               ｅｍｐｈａｔｉｃａｌｌｙ               ｎｏｔ               ｔｒｕｅ               ｔｈａｔ               ｔｈｅ               Ｈｉｇｈ               Ｃｏｕｒｔ               ｐｒｅｓｅｎｔｅｄ               ａｎｙ               ｓｐｅｃｉｆｉｃ               ｆｉｎｄｉｎｇ               ｏｆ               ｇｕｉｌｔ               ｗｉｔｈ               ｒｅｓｐｅｃｔ               ｔｏ               ｔｈｅ               ｃｈａｒｇｅｓ               ｏｆ               ｍｉｓｃｏｎｄｕｃｔ               ａｎｄ               ｍｏｎｏｐｏｌｉｓｔｉｃ               ｐｅｒｆｏｒｍａｎｃｅ               ｂｒｏｕｇｈｔ               ａｇａｉｎｓｔ               [Ｓｔａｎｄａｒｄ               Ｏｉｌ]               ｂｙ               ｔｈｅ               ｇｏｖｅｒｎｍｅｎｔ...

Ａｌｌ               ｔｈａｔ               ｔｈｅ               Ｓｕｐｒｅｍｅ               Ｃｏｕｒｔ               ｄｉｄ               -               ｃｏｎｔｒａｒｙ               ｔｏ               ｏｖｅｒｗｈｅｌｍｉｎｇ               ｃｏｎｖｅｎｔｉｏｎａｌ               ｗｉｓｄｏｍ               -               ｗａｓ               ｃｏｎｃｌｕｄｅ               ｔｈａｔ               ｓｏｍｅ               ｏｆ               Ｓｔａｎｄａｒｄ'ｓ               ｐｒａｃｔｉｃｅｓ,               ｓｕｃｈ               ａｓ               ｍｅｒｇｅｒ,               ｅｖｉｄｅｎｃｅｄ               ａｎ               ｕｎｍｉｓｔａｋａｂｌｅ               ｉｎｔｅｎｔ               ｔｏ               ｍｏｎｏｐｏｌｉｚｅ               ａｎｄ               ｔｈａｔ               ｔｈｅｓｅ               ｐｒａｃｔｉｃｅｓ               ｗｅｒｅ               ｕｎｒｅａｓｏｎａｂｌｅ.

Ｗｈｙ               ｗｅｒｅ               ｔｈｅｙ               ｕｎｒｅａｓｏｎａｂｌｅ?

Ｂｅｃａｕｓｅ               ｔｈｅ               ｃｏｕｒｔ               ｓａｉｄ               ｔｈａｔ               ｉｔ               ｗａｓ               ｏｂｖｉｏｕｓ               ｔｈａｔ               ｔｈｅｙ               ｗｅｒｅ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

42-43).

Ｃｌｅａｒｌｙ,               ｔｈｉｓ               ｄｅｆｉｎｉｎｇ               ｃａｓｅ               ｉｎ               ｔｈｅ               ｈｉｓｔｏｒｙ               ｏｆ               ａｎｔｉｔｒｕｓｔ               ｌａｗ               ｗａｓ               ｂａｓｅｄ               ｏｎ               ｄｕｂｉｏｕｓ               ｒｅａｓｏｎｉｎｇ               ａｔ               ｂｅｓｔ.
               Ｃｒｉｔｉｑｕｅ               ｏｆ               Ｅｍｐｉｒｉｃａｌ               Ｓｔｕｄｉｅｓ
               Ａｒｍｅｎｔａｎｏ               ｇｏｅｓ               ｏｎ               ｔｏ               ｃｒｉｔｉｃｉｚｅ               ｅｍｐｉｒｉｃａｌ               ｓｔｕｄｉｅｓ               ｔｈａｔ               ａｓｓｕｍｅ               ｔｈａｔ               ｍａｒｋｅｔ               ｃｏｎｃｅｎｔｒａｔｉｏｎ,               ｐｒｏｆｉｔａｂｉｌｉｔｙ,               ａｎｄ               ｅｖｅｎ               ａｄｖｅｒｔｉｓｉｎｇ               ａｎｄ               ｐｒｏｄｕｃｔ               ｄｉｆｆｅｒｅｎｔｉａｔｉｏｎ               ａｒｅ               ｍｅａｓｕｒｅｓ               ｏｆ               ｍｏｎｏｐｏｌｙ               ｐｏｗｅｒ               ａｎｄ               ｔｈｕｓ               ｒｅｓｔｒｉｃｔｉｏｎｓ               ｏｆ               ｃｏｍｐｅｔｉｔｉｏｎ.

Ｔｈｅｒｅ               ａｒｅ               ｓｅｖｅｒｅ               ｍｅｔｈｏｄｏｌｏｇｉｃａｌ               ｐｒｏｂｌｅｍｓ               ｗｉｔｈ               ｓｕｃｈ               ｓｔｕｄｉｅｓ.
               Ｆｉｒｓｔ,               ｔｈｅｓｅ               ｓｔｕｄｉｅｓ               ｍｅａｓｕｒｅ               ａｃｃｏｕｎｔｉｎｇ               ｐｒｏｆｉｔ,               ｎｏｔ               ｅｃｏｎｏｍｉｃ               ｐｒｏｆｉｔ,               ｗｈｉｃｈ               ｍａｙ               ｌｅａｄ               ｔｏ               ｆｌａｗｅｄ               ｃｏｎｃｌｕｓｉｏｎｓ.

"Ｓｅｃｏｎｄ,               ｌｅｇａｌ               ｍｏｎｏｐｏｌｙ               ａｎｄ               ｆｒｅｅ-ｍａｒｋｅｔ               ｍｏｎｏｐｏｌｙ               ｍｉｇｈｔ               ｗｅｌｌ               ｂｅ               ｉｎｅｘｏｒａｂｌｙ               ｉｎｔｅｒｔｗｉｎｅｄ               ｉｎ               ｔｈｅ               ａｃｔｕａｌ               ｂｕｓｉｎｅｓｓ               ｗｏｒｌｄ;               ｔａｒｉｆｆｓ,               ｑｕｏｔａｓ,               ｌｉｃｅｎｓｉｎｇ,               ａｎｄ               ｏｔｈｅｒ               ｌｅｇａｌ               ｒｅｓｔｒｉｃｔｉｏｎｓ               ａｌｗａｙｓ               ｔｅｎｄ               ｔｏ               ｇｅｎｅｒａｔｅ               ｅｃｏｎｏｍｉｃ               ｒｅｎｔｓ               ｉｎ               ｍａｒｋｅｔｓ               ｔｈａｔ               ａｒｅ               ｏｔｈｅｒｗｉｓｅ               ｏｐｅｎｌｙ               ｃｏｍｐｅｔｉｔｉｖｅ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

44).

Ｆｉｎａｌｌｙ,               ｔｈｅｓｅ               ｓｔｕｄｉｅｓ               ａｒｅ               ｆｌａｗｅｄ               ｉｎ               ｕｓｉｎｇ               ｔｈｅ               ｈｙｐｏｔｈｅｔｉｃａｌ               "ｐｅｒｆｅｃｔｌｙ               ｃｏｍｐｅｔｉｔｉｖｅ"               ｏｕｔｐｕｔ               ａｓ               ａ               ｂｅｎｃｈｍａｒｋ               ｔｏ               ｗｈｉｃｈ               ｔｏ               ｃｏｍｐａｒｅ               ｒｅａｌ-ｗｏｒｌｄ               ｓｉｔｕａｔｉｏｎｓ.
               Ｌｅｇａｌ               Ｍｏｎｏｐｏｌｙ
               Ａｒｍｅｎｔａｎｏ               ａｃｋｎｏｗｌｅｄｇｅｓ               ｔｈａｔ               ｌｅｇａｌ               ｍｏｎｏｐｏｌｉｅｓ,               ｅｓｔａｂｌｉｓｈｅｄ               ｖｉａ               ｇｏｖｅｒｎｍｅｎｔ               ａｉｄ,               ｃａｎ               ａｎｄ               ｄｏ               ｈａｒｍ               ｃｏｎｓｕｍｅｒｓ.

Ｌｅｇａｌ               ｍｏｎｏｐｏｌｉｅｓ               ｃａｎ               ｂｅ               ｂｒｏｕｇｈｔ               ａｂｏｕｔ               ｂｙ               ｌｉｃｅｎｓｉｎｇ,               ｑｕｏｔａｓ,               ｌｅｇａｌ               ｆｒａｎｃｈｉｓｅｓ,               ｃｅｒｔｉｆｉｃａｔｅｓ               ｏｆ               ｐｕｂｌｉｃ               ｃｏｎｖｅｎｉｅｎｃｅ,               ａｎｄ               ｏｔｈｅｒ               ｍｅａｎｓ.

Ｖｏｌｕｎｔａｒｙ               ｅｘｃｈａｎｇｅｓ               ａｒｅ               ｔｈｅｒｅｂｙ               ｐｒｅｖｅｎｔｅｄ               ａｎｄ               "ｔｈｅ               ｃｏｍｐｅｔｉｔｉｖｅ               ｍａｒｋｅｔ               ｐｒｏｃｅｓｓ               ｈａｓ               ｂｅｅｎ               ｕｎｄｅｒｃｕｔ               ａｎｄ               ａｒｔｉｆｉｃｉａｌｌｙ               ｓｈｏｒｔｃｉｒｃｕｉｔｅｄ               -               ｂｙ               ｌａｗ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

45).

Ｔｈｉｓ               ｗｉｌｌ               ｏｆｔｅｎ               ｒｅｄｕｃｅ               ｏｕｔｐｕｔ               ａｎｄ               ｒａｉｓｅ               ｐｒｉｃｅｓ;               ｅｆｆｉｃｉｅｎｔ               ｐｒｏｄｕｃｅｒｓ               ｗｉｌｌ               ｏｆｔｅｎ               ｂｅ               ｅｘｃｌｕｄｅｄ               ｔｏ               ｔｈｅ               ｂｅｎｅｆｉｔ               ｏｆ               ｔｈｏｓｅ               ｗｈｏ               ａｒｅ               ｂｅｓｔ               ａｔ               ｓｅｅｋｉｎｇ               ｇｏｖｅｒｎｍｅｎｔ               ｆａｖｏｒｓ.

Ｔｏ               ａｄｄ               ｔｏ               ｔｈｅ               ｐｒｏｂｌｅｍ,               ｎｏ               ｅｃｏｎｏｍｉｃ               ｉｎｃｅｎｔｉｖｅｓ               ｅｘｉｓｔ               ｔｏ               ｒｅｍｅｄｙ               ｔｈｅ               ｌｅｇａｌｌｙ-ｉｎｄｕｃｅｄ               ｒｅｄｕｃｔｉｏｎ               ｏｆ               ｏｕｔｐｕｔ.

Ｉｎ               ｔｈｅ               ｍｅａｎｔｉｍｅ,               ｆｉｒｍｓ               ｗｉｌｌ               ｃｏｎｔｉｎｕａｌｌｙ               ｗａｓｔｅ               ｒｅｓｏｕｒｃｅｓ               ｌｏｂｂｙｉｎｇ               ｆｏｒ               ｇｏｖｅｒｎｍｅｎｔ               ｆａｖｏｒｓ.
               Ｔｈｅ               ｏｎｌｙ               ｌｅｇｉｔｉｍａｔｅ               ｕｓｅ               ｏｆ               ａｎｔｉｔｒｕｓｔ               ｌａｗｓ,               ａｃｃｏｒｄｉｎｇ               ｔｏ               Ａｒｍｅｎｔａｎｏ,               ｉｓ               "ｔｏ               ｒｅｍｏｖｅ               ｌｅｇａｌ               ｒｅｓｔｒｉｃｔｉｏｎｓ               ｏｎ               ｃｏｍｐｅｔｉｔｉｏｎ               ａｎｄ               ｃｏｏｐｅｒａｔｉｏｎ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

46).

Ｂｕｔ               ｅｖｅｎ               ｈｅｒｅ               ｉｔ               ｉｓ               ｎｅｃｅｓｓａｒｙ               ｔｏ               ｐｒｏｃｅｅｄ               ｗｉｔｈ               ｃａｕｔｉｏｎ               ｓｏ               ａｓ               ｔｏ               ａｖｏｉｄ               ｐｒｏｓｅｃｕｔｉｎｇ               ｆｒｅｅ-ｍａｒｋｅｔ               ｃｏｏｐｅｒａｔｉｖｅ               ａｇｒｅｅｍｅｎｔｓ               ａｍｏｎｇ               ｓｕｐｐｌｉｅｒｓ               ａｎｄ               ｔｏ               ｐｒｅｖｅｎｔ               ｔｈｅ               ｈｏｒｒｅｎｄｏｕｓ               ｄａｍａｇｅ               ｂｒｏｕｇｈｔ               ａｂｏｕｔ               ｂｙ               ｐｒｉｖａｔｅ               ａｎｔｉｔｒｕｓｔ               ｌａｗｓｕｉｔｓ.
               Ｆｒｅｅ-Ｍａｒｋｅｔ               Ｂａｒｒｉｅｒｓ               ｔｏ               Ｅｎｔｒｙ?
               Ａｒｍｅｎｔａｎｏ               ｄｅｖｏｔｅｓ               Ｃｈａｐｔｅｒ               4               ｏｆ               Ａｎｔｉｔｒｕｓｔ               ｔｏ               ａｄｄｒｅｓｓｉｎｇ               ａｌｌｅｇｅｄ               ｆｒｅｅ-ｍａｒｋｅｔ               ｂａｒｒｉｅｒｓ               ｔｏ               ｅｎｔｒｙ               ｓｕｃｈ               ａｓ               ａｄｖｅｒｔｉｓｉｎｇ               ａｎｄ               ｐｒｏｄｕｃｔ               ｄｉｆｆｅｒｅｎｔｉａｔｉｏｎ.
               Ｐｒｏｄｕｃｔ               ｄｉｆｆｅｒｅｎｔｉａｔｉｏｎ               ｃａｎ               ｏｎｌｙ               ｏｃｃｕｒ               ｉｎ               ａ               ｍａｒｋｅｔ               ｉｆ               ｃｏｎｓｕｍｅｒｓ               ｈａｖｅ               ｅｘｐｒｅｓｓｅｄ               ａ               ｐｒｅｆｅｒｅｎｃｅ               ｆｏｒ               ｉｔ               ａｎｄ               ａ               ｗｉｌｌｉｎｇｎｅｓｓ               ｔｏ               ｂｅａｒ               ｉｔｓ               ｃｏｓｔｓ.

Ｉｆ               ｎｅｗ               ｐｒｏｄｕｃｅｒｓ               ｆｉｎｄ               ｉｔ               ｄｉｆｆｉｃｕｌｔ               ｔｏ               ｅｎｔｅｒ               ａ               ｍａｒｋｅｔ               ｆｕｌｌ               ｏｆ               ｄｉｆｆｅｒｅｎｔｉａｔｅｄ               ｐｒｏｄｕｃｔｓ,               ｔｈｅｎ               ｔｈｉｓ               ｉｓ               ｄｕｅ               ｔｏ               ｔｈｅ               ｎａｔｕｒｅ               ｏｆ               ｃｏｎｓｕｍｅｒ               ｐｒｅｆｅｒｅｎｃｅｓ,               ｎｏｔ               ｔｏ               ａｎｙ               "ｕｎｆａｉｒ               ａｄｖａｎｔａｇｅｓ"               ｐｏｓｓｅｓｓｅｄ               ｂｙ               ｉｎｃｕｍｂｅｎｔ               ｆｉｒｍｓ.

Ａｓ               ｅｆｆｉｃｉｅｎｔ               ｒｅｓｏｕｒｃｅ               ａｌｌｏｃａｔｉｏｎ               ｒｅｑｕｉｒｅｓ               ｔｈａｔ               ｒｅｓｏｕｒｃｅｓ               ｂｅ               ｐｕｔ               ｔｏ               ｔｈｅ               ｕｓｅｓ               ｍｏｓｔ               ｖａｌｕｅｄ               ｂｙ               ｃｏｎｓｕｍｅｒｓ,               ｐｒｏｄｕｃｔ               ｄｉｆｆｅｒｅｎｔｉａｔｉｏｎ               ｉｓ               ｎｏ               ｇｒｏｕｎｄｓ               ｆｏｒ               ａｎｔｉｔｒｕｓｔ               ｐｒｏｓｅｃｕｔｉｏｎ.

Ｆｕｒｔｈｅｒｍｏｒｅ,               ａｎｙｏｎｅ               ｉｓ               ｓｔｉｌｌ               ｆｒｅｅ               ｔｏ               ｅｎｔｅｒ               ａ               ｄｉｆｆｅｒｅｎｔｉａｔｅｄ               ｍａｒｋｅｔ               ａｎｄ               ｔｏ               ａｔｔｅｍｐｔ               ｔｏ               ｃｏｎｖｉｎｃｅ               ｃｏｎｓｕｍｅｒｓ               ｔｏ               ｓｕｐｐｏｒｔ               ｌｅｓｓ               ｐｒｏｄｕｃｔ               ｄｉｆｆｅｒｅｎｔｉａｔｉｏｎ               ｏｒ               ｔｏ               ｆｉｎｄ               ｃｈｅａｐｅｒ               ｍｅｔｈｏｄｓ               ｏｆ               ｐｒｏｄｕｃｔｉｏｎ.
               Ｆｕｒｔｈｅｒｍｏｒｅ,               Ａｒｍｅｎｔａｎｏ               ｒｅｊｅｃｔｓ               ｔｈｅ               ｃｒｉｔｉｑｕｅ               ｏｆ               ｓｏｍｅ               ｐｒｏｄｕｃｔ               ｄｉｆｆｅｒｅｎｔｉａｔｉｏｎ               ａｓ               ｆｒｉｖｏｌｏｕｓ               ａｎｄ               ｕｎｎｅｃｅｓｓａｒｙ               ｂｙ               ｎｏｔｉｎｇ               ｔｈａｔ               ｔｈｅ               ｒｅｖｅａｌｅｄ               ｐｒｅｆｅｒｅｎｃｅｓ               ｏｆ               ｃｏｎｓｕｍｅｒｓ               ａｒｅ               ｗｈａｔ               ｍｕｓｔ               ｕｌｔｉｍａｔｅｌｙ               ｄｅｃｉｄｅ               ｂｅｔｗｅｅｎ               ｎｅｃｅｓｓａｒｙ               ａｎｄ               ｓｕｐｅｒｆｌｕｏｕｓ               ｐｒｏｄｕｃｔ               ｄｉｆｆｅｒｅｎｔｉａｔｉｏｎ.

Ｉｆ               ｃｏｎｓｕｍｅｒｓ               "ａｒｅ               ｗｉｌｌｉｎｇ               ｔｏ               ｐａｙ               ｓｕｂｓｔａｎｔｉａｌｌｙ               ｍｏｒｅ               ｆｏｒ               ｓｏｍｅ               ｄｉｆｆｅｒｅｎｔｉａｔｉｏｎ,               ｔｈｅｎ               ｉｔ               ｉｓ               ｄｅｍｏｎｓｔｒａｂｌｙ               ｎｏｔ               ｆｒｉｖｏｌｏｕｓ               ａｎｄ               ｔｈｅ               ｒｅｓｏｕｒｃｅｓ               ｉｔ               ｕｓｅｓ               ａｒｅ               ｎｏｔ               ｍｉｓａｌｌｏｃａｔｅｄ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

54).

Ｉｔ               ｉｓ               ｐｏｓｓｉｂｌｅ               ｆｏｒ               ｆｉｒｍｓ               ｔｏ               ｗａｓｔｅ               ｒｅｓｏｕｒｃｅｓ               ｉｎ               ｔｒｙｉｎｇ               ｔｏ               ｆｉｇｕｒｅ               ｏｕｔ               ｅｘａｃｔｌｙ               ｗｈａｔ               ｃｏｎｓｕｍｅｒｓ               ｐｒｅｆｅｒ               -               ｂｕｔ               ｔｈｉｓ               ｉｓ               ｂｅｃａｕｓｅ               ｆｉｒｍｓ               ｍｕｓｔ               ａｎｔｉｃｉｐａｔｅ               ｃｏｎｓｕｍｅｒｓ'               ｐｒｅｆｅｒｅｎｃｅｓ               ｂｅｆｏｒｅ               ｔｈｏｓｅ               ｐｒｅｆｅｒｅｎｃｅｓ               ａｒｅ               ｅｘｐｌｉｃｉｔｌｙ               ｒｅｖｅａｌｅｄ,               ｔｈｕｓ               ｌｅａｄｉｎｇ               ｔｏ               ａ               ｐｏｔｅｎｔｉａｌ               ｆｏｒ               ｅｒｒｏｒ               ａｎｄ               ｍｉｓｃａｌｃｕｌａｔｉｏｎ.

Ｓｕｃｈ               ｍｉｓｔａｋｅｓ               ａｒｅ               ｉｎｅｖｉｔａｂｌｅ,               ｅｖｅｎ               ｇｉｖｅｎ               ｓｔｒｏｎｇ               ｆｒｅｅ-ｍａｒｋｅｔ               ｉｎｃｅｎｔｉｖｅｓ               ｎｏｔ               ｔｏ               ｍａｋｅ               ｔｈｅｍ.

Ｎｏｔｈｉｎｇ               ｉｎ               ａｎｔｉｔｒｕｓｔ               ｌａｗ               ｃａｎ               ｍａｋｅ               ｔｈｅｓｅ               ｍｉｓｔａｋｅｓ               ａｎｙ               ｌｅｓｓ               ｆｒｅｑｕｅｎｔ.
               Ａｄｖｅｒｔｉｓｉｎｇ               ｉｎ               ａ               ｆｒｅｅ               ｍａｒｋｅｔ               ｉｓ,               ｌｉｋｅｗｉｓｅ,               ｎｏｔ               ａ               ｐｒｏｂｌｅｍ.

Ａｒｍｅｎｔａｎｏ               ｎｏｔｅｓ               ｔｈａｔ               ｔｒｅａｔｉｎｇ               ａｄｖｅｒｔｉｓｉｎｇ               ａｓ               ａ               ｓｕｐｅｒｆｌｕｏｕｓ               "ｓｅｌｌｉｎｇ               ｅｘｐｅｎｓｅ"               ａｐａｒｔ               ｆｒｏｍ               ｐｒｏｄｕｃｔｉｏｎ               ｅｘｐｅｎｓｅｓ               "ｉｓ               ｔｏｔａｌｌｙ               ａｒｂｉｔｒａｒｙ.

Ａｌｌ               ｂｕｓｉｎｅｓｓ               ｃｏｓｔｓ               ａｒｅ               ｓｅｌｌｉｎｇ               ｃｏｓｔｓ               ｉｎ               ｔｈｅ               ｓｅｎｓｅ               ｔｈａｔ               ａｌｌ               ｒｅｓｏｕｒｃｅｓ               ａｒｅ               ｅｘｐｅｎｄｅｄ               ｗｉｔｈ               ｔｈｅ               ｐｕｒｐｏｓｅ               ｏｆ               ｓｅｌｌｉｎｇ               ｐｒｏｄｕｃｔｓ               ｔｏ               ｃｏｎｓｕｍｅｒｓ               ａｔ               ａ               ｐｒｏｆｉｔ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

58).

Ａｄｖｅｒｔｉｓｉｎｇ               ｗｏｕｌｄ               ｉｎｄｅｅｄ               ｂｅ               ｕｎｎｅｃｅｓｓａｒｙ               ｉｎ               ａ               "ｐｅｒｆｅｃｔｌｙ               ｃｏｍｐｅｔｉｔｉｖｅ"               ｍａｒｋｅｔ               ｗｉｔｈ               ｐｅｒｆｅｃｔ               ｉｎｆｏｒｍａｔｉｏｎ,               ｂｕｔ               ｔｈｉｓ               ｉｓ               ｎｏｔ               ａ               ｒｅａｌ-ｗｏｒｌｄ               ｐｏｓｓｉｂｉｌｉｔｙ.
               Ａｒｍｅｎｔａｎｏ               ｄｏｅｓ               ｎｏｔ               ｐｅｒｃｅｉｖｅ               ａ               ｐｒｏｂｌｅｍ               ｗｉｔｈ               ｆｉｒｍｓ               ｗｈｏ               ａｄｖｅｒｔｉｓｅ               ｍｏｒｅ               ｅｆｆｉｃｉｅｎｔｌｙ               ｔｈａｎ               ｏｔｈｅｒｓ;               ｔｈｉｓ               ｉｓ               ｎｏｔ               ａ               ｍｉｓａｌｌｏｃａｔｉｏｎ               ｏｆ               ｒｅｓｏｕｒｃｅｓ.

"Ｔｈｅ               ｏｎｌｙ               ｏｂｖｉｏｕｓ               ｗａｓｔｅ               ｈｅｒｅ               ｉｓ               ｏｎ               ｔｈｅ               ｐａｒｔ               ｏｆ               ｔｈｅ               ｆｉｒｍｓ               ｔｈａｔ               ａｄｖｅｒｔｉｓｅ               ｌｅｓｓ               ｅｆｆｉｃｉｅｎｔｌｙ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

59).
               Ｆｕｒｔｈｅｒｍｏｒｅ,               Ａｒｍｅｎｔａｎｏ               ｓｅｅｓ               ｎｏｔｈｉｎｇ               ｐｒｏｂｌｅｍａｔｉｃ               ｗｉｔｈ               ｆｉｒｍｓ               ｔｈａｔ               ｔａｋｅ               ａｄｖａｎｔａｇｅ               ｏｆ               ｌｏｗ-ｃｏｓｔ               ｔｅｃｈｎｏｌｏｇｉｅｓ               ａｎｄ               ｅｃｏｎｏｍｉｅｓ               ｏｆ               ｓｃａｌｅ               ｔｏ               ｍａｉｎｔａｉｎ               ｄｏｍｉｎａｎｔ               ｐｏｓｉｔｉｏｎｓ               ｉｎ               ａ               ｍａｒｋｅｔ.

Ｓｕｃｈ               ｄｏｍｉｎａｎｃｅ               ｉｓ               ｐｕｒｅｌｙ               ｌｅｇｉｔｉｍａｔｅ,               ａｓ               ｉｔ               ｉｓ               ｄｕｅ               ｔｏ               ｅｆｆｉｃｉｅｎｔ               ｆｉｒｍｓ'               ａｂｉｌｉｔｙ               ｔｏ               ｍｏｒｅ               ｒｅａｄｉｌｙ               ｓａｔｉｓｆｙ               ｃｏｎｓｕｍｅｒ               ｐｒｅｆｅｒｅｎｃｅｓ.

Ｔｈｅ               ｖｅｒｙ               ｐｏｉｎｔ               ｏｆ               ｔｈｅ               ｍａｒｋｅｔ               ｐｒｏｃｅｓｓ               ｉｓ               ｔｏ               ｄｉｓｃｏｖｅｒ               ｔｈｅ               ｍｏｓｔ               ｅｆｆｉｃｉｅｎｔ               ｗａｙ               ｔｏ               ｅｎｈａｎｃｅ               ｃｏｎｓｕｍｅｒ               ｗｅｌｌ-ｂｅｉｎｇ;               ｔｈｉｓ               ｈａｓ               ｎｏｔｈｉｎｇ               ｔｏ               ｄｏ               ｗｉｔｈ               ａ               ｓｐｅｃｉｆｉｃ               ｎｕｍｂｅｒ               ｏｆ               ｃｏｍｐｅｔｉｔｏｒｓ,               ａｎｄ               ｉｔ               ｉｓ               ｑｕｉｔｅ               ｐｏｓｓｉｂｌｅ               ｔｈａｔ               ｏｎｅ               ｆｉｒｍ               ｏｒ               ａ               ｆｅｗ               ｆｉｒｍｓ               ｍｉｇｈｔ               ｂｅ               ｍｏｒｅ               ｓｕｉｔｅｄ               ｔｏ               ｓｕｐｐｌｙｉｎｇ               ｃｏｎｓｕｍｅｒ               ｗａｎｔｓ               ｉｎ               ａ               ｇｉｖｅｎ               ｍａｒｋｅｔ               ｔｈａｎ               ａ               ｍｕｌｔｉｔｕｄｅ               ｏｆ               ｆｉｒｍｓ.
               Ｎｏｒ               ｉｓ               ｓｏｍｅ               ｆｉｒｍｓ'               ｅａｓｉｅｒ               ａｃｃｅｓｓ               ｔｏ               ｆｉｎａｎｃｉａｌ               ｃａｐｉｔａｌ               ａ               ｂａｒｒｉｅｒ               ｔｏ               ｇｅｎｕｉｎｅ               ｃｏｍｐｅｔｉｔｉｏｎ.

Ａｒｍｅｎｔａｎｏ               ｎｏｔｅｓ               ｔｈａｔ               "Ｆｉｎａｎｃｉａｌ               ｃａｐｉｔａｌ,               ｌｉｋｅ               ａｌｌ               ｒｅｓｏｕｒｃｅｓ,               ｃａｎｎｏｔ               ｂｅ               ｆｒｅｅ               ｔｏ               ａｌｌ               ｗｈｏ               ｗｏｕｌｄ               ｗａｎｔ               ｔｏ               ｕｓｅ               ｉｔ,               ａｎｄ               ｉｔｓ               ｃｏｓｔｓ               ｍｕｓｔ               ｂｅ               ｂｏｒｎｅ               ｂｙ               ｔｈｏｓｅ               ｗｈｏ               ｉｎｔｅｎｄ               ｔｏ               ｕｓｅ               ｉｔ               ｐｒｏｄｕｃｔｉｖｅｌｙ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

63).

Ｓｏｍｅ               ｆｉｒｍｓ               ｍａｙ               ｂｅ               ａｂｌｅ               ｔｏ               ａｃｑｕｉｒｅ               ｃａｐｉｔａｌ               ａｔ               ｌｏｗｅｒ               ｃｏｓｔｓ               ｂｅｃａｕｓｅ               ｔｈｅｙ               ｈａｖｅ               ｄｅｍｏｎｓｔｒａｔｅｄ               ｔｈａｔ               ｔｈｅｙ               ａｒｅ               ｌｏｗｅｒ               ｒｉｓｋｓ               ａｎｄ               ｈａｖｅ               ｂｅｅｎ               ａｂｌｅ               ｔｏ               ｓｈｏｗ               ｔｈｒｏｕｇｈ               ｔｈｅｉｒ               ｐａｓｔ               ａｃｔｉｖｉｔｉｅｓ               ｔｈａｔ               ｔｈｅｙ               ａｒｅ               ａｂｌｅ               ｔｏ               ｕｓｅ               ｃａｐｉｔａｌ               ｓｕｃｃｅｓｓｆｕｌｌｙ.

Ｉｎｓｏｆａｒ               ａｓ               ｃａｐｉｔａｌ               ｃｏｓｔｓ               ａｒｅ               ａ               ｂａｒｒｉｅｒ               ｔｏ               ｅｎｔｒｙ,               ｔｈｅｙ               ｅｎａｂｌｅ               ｍｏｒｅ               ｅｆｆｉｃｉｅｎｔ               ｕｓｅｒｓ               ｏｆ               ｃａｐｉｔａｌ               ｔｏ               ｅｘｃｌｕｄｅ               ｌｅｓｓ               ｅｆｆｉｃｉｅｎｔ               ｏｎｅｓ               -               ｗｈｉｃｈ               ｉｓ               ｎｏｔ               ａ               ｐｒｏｂｌｅｍ               ｆｏｒ               ｃｏｎｓｕｍｅｒｓ.

Ｆｕｒｔｈｅｒｍｏｒｅ,               ｔｈｉｓ               ｂａｒｒｉｅｒ               ｉｓ               ｒｏｕｔｉｎｅｌｙ               ｏｖｅｒｃｏｍｅ,               ａｓ               ｔｈｏｕｓａｎｄｓ               ｏｆ               ｎｅｗ               ｆｉｒｍｓ               ｒｅｃｅｉｖｅ               ａｃｃｅｓｓ               ｔｏ               ｃａｐｉｔａｌ;               ｔｈｅ               ｏｎｌｙ               ｐｒｏｂｌｅｍａｔｉｃ               ｂａｒｒｉｅｒｓ               ｔｏ               ｃａｐｉｔａｌ               ａｒｅ               ｔｈｏｓｅ               ｅｒｅｃｔｅｄ               ｂｙ               ｔｈｅ               ｌａｗ.
               Ｎｏｒ               ｉｓ               "ｐｒｅｄａｔｏｒｙ               ｐｒｉｃｉｎｇ"               ａ               ｐｒｏｂｌｅｍ               ｉｎ               ａ               ｆｒｅｅ               ｍａｒｋｅｔ.

Ａｒｍｅｎｔａｎｏ               ｍｅｎｔｉｏｎｓ               ｔｈｅ               ｄｉｆｆｉｃｕｌｔｙ               ｏｆ               ｄｉｓｔｉｎｇｕｉｓｈｉｎｇ               ｇｅｎｕｉｎｅｌｙ               "ｐｒｅｄａｔｏｒｙ"               ｐｒａｃｔｉｃｅｓ               ｆｒｏｍ               ｒｏｕｔｉｎｅ               ｃｏｍｐｅｔｉｔｉｖｅ               ｐｒｉｃｅ               ｒｅｄｕｃｔｉｏｎｓ               ａｎｄ               ｐｒｏｄｕｃｔ               ｉｎｎｏｖａｔｉｏｎｓ.

Ｈｅ               ａｓｋｓ:               "ｗｈｉｃｈ               ｃｏｓｔｓ               ａｒｅ               ｒｅｌｅｖａｎｔ               ｆｏｒ               ｓｕｃｈ               ｄｅｔｅｒｍｉｎａｔｉｏｎｓ?

Ａｖｅｒａｇｅ               ｃｏｓｔｓ?

Ｍａｒｇｉｎａｌ               ｃｏｓｔｓ?

Ｌｏｎｇ-ｒｕｎ               ｍａｒｇｉｎａｌ               ｃｏｓｔｓ?

Ｗｈｙ               ａｒｅ               ｈｉｓｔｏｒｉｃａｌ               ａｃｃｏｕｎｔｉｎｇ               ｃｏｓｔｓ               ｒｅｌｅｖａｎｔ               ａｔ               ａｌｌ?"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

65).

Ｆｕｒｔｈｅｒｍｏｒｅ,               "ｐｒｅｄａｔｏｒｙ               ｐｒａｃｔｉｃｅｓ               ｃａｎｎｏｔ               ｓｕｃｃｅｅｄ               ｗｉｔｈｏｕｔ               ｄｉｒｅｃｔ               ｃｏｎｓｕｍｅｒ-ｂｕｙｅｒ               ｓｕｐｐｏｒｔ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

65).

Ｉｆ               ｂｕｙｅｒｓ               ａｒｅ               ｄｉｓｐｌｅａｓｅｄ               ｂｙ               ａ               ｃｅｒｔａｉｎ               ｆｉｒｍ'ｓ               ｐｒｉｃｅ               ｃｕｔｔｉｎｇ,               ｔｈｅｙ               ａｒｅ               ａｌｗａｙｓ               ｆｒｅｅ               ｔｏ               ｐａｔｒｏｎｉｚｅ               ｔｈａｔ               ｆｉｒｍ'ｓ               ｃｏｍｐｅｔｉｔｏｒｓ.

Ｔｈｅ               ｆａｃｔ               ｔｈａｔ               ｔｈｉｓ               ｄｏｅｓ               ｎｏｔ               ｈａｐｐｅｎ               ｍｅａｎｓ               ｔｈａｔ               ｓｕｃｈ               "ｐｒｅｄａｔｏｒｙ"               ｐｒｉｃｅ               ｒｅｄｕｃｔｉｏｎｓ               ｄｏ               ｎｏｔ               ｈａｒｍ               ｃｏｎｓｕｍｅｒｓ.

Ｆｕｒｔｈｅｒｍｏｒｅ,               ａｎｔｉｔｒｕｓｔ               ｐｒｏｐｏｎｅｎｔｓ               ｃａｎｎｏｔ               ｌｅｇｉｔｉｍａｔｅｌｙ               ｃｌａｉｍ               ｔｏ               ｋｎｏｗ               ｔｈｅ               ｌｏｎｇ-ｒｕｎ               ｐｒｅｆｅｒｅｎｃｅｓ               ｏｆ               ｂｕｙｅｒｓ               ｂｅｔｔｅｒ               ｔｈａｎ               ｔｈｅ               ｂｕｙｅｒｓ               ｄｏ               ｔｈｅｍｓｅｌｖｅｓ               -               ａｎｄ               ｍｏｒｅｏｖｅｒ,               ｃｏｎｓｕｍｅｒｓ               "ｃａｎ               ｓｕｒｅｌｙ               ｄｅｃｉｄｅ               ｔｈｅｉｒ               ｏｗｎ               ｔｉｍｅ               ｐｒｅｆｅｒｅｎｃｅｓ               ａｎｄ               ｔｈｅｎ               ｄｅｃｉｄｅ               ｗｈｅｔｈｅｒ               ｔｈｅ               ａｄｖａｎｔａｇｅｓ               ｏｆ               ｓｈｏｒｔ-ｒｕｎ               ｐｒｉｃｅ               ｒｅｄｕｃｔｉｏｎｓ               ｅｘｃｅｅｄ               ｔｈｅ               ｐｏｓｓｉｂｌｅ               ｄｉｓａｄｖａｎｔａｇｅｓ               ｏｆ               ｆｅｗｅｒ               ｓｕｐｐｌｉｅｒｓ               ｉｎ               ｔｈｅ               ｆｕｔｕｒｅ"               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

65).
               Ａｒｍｅｎｔａｎｏ               ａｐｐｌｉｅｓ               ｔｈｅ               ｓａｍｅ               ｌｏｇｉｃ               ｔｏ               ｓｏ-ｃａｌｌｅｄ               ｎｏｎ-ｐｒｉｃｅ               ｐｒｅｄａｔｏｒｙ               ｐｒａｃｔｉｃｅｓ.

Ｉｔ               ｉｓ               ｕｐ               ｔｏ               ｃｏｎｓｕｍｅｒｓ               ｔｏ               ｃｈｏｏｓｅ               ｗｈｅｔｈｅｒ               ａ               ｎｅｗ               ｐｒｏｄｕｃｔ               ｉｎｎｏｖａｔｉｏｎ               ｗｉｌｌ               ｒｅｄｕｃｅ               ｔｈｅ               ｎｕｍｂｅｒ               ｏｆ               ｃｏｍｐｅｔｉｔｏｒｓ               -               ａｎｄ               ｉｆ               ｃｏｎｓｕｍｅｒｓ               ｄｏ               ｓｏ,               ｔｈｉｓ               ｉｓ               ｎｏｔ               ｐｒｏｂｌｅｍａｔｉｃ.

Ａｒｍｅｎｔａｎｏ               ｎｏｔｅｓ               ｔｈａｔ               "ｉｔ               ｗｏｕｌｄ               ｂｅ               ｄｉｆｆｉｃｕｌｔ               ｔｏ               ｉｍａｇｉｎｅ               ａｎ               ａｎｔｉｔｒｕｓｔ               ｉｎｔｅｒｖｅｎｔｉｏｎ               ａｓ               ｐｏｔｅｎｔｉａｌｌｙ               ｄａｎｇｅｒｏｕｓ               ｏｒ               ｄａｍａｇｉｎｇ               ｔｏ               ｆｕｔｕｒｅ               ｃｏｎｓｕｍｅｒ               ｗｅｌｆａｒｅ               ａｓ               ｔｈｉｓ               ｓｏｒｔ               ｏｆ               ｉｎｎｏｖａｔｉｏｎ               ｒｅｇｕｌａｔｉｏｎ"               ｗｈｉｃｈ               ｗｏｕｌｄ               ｂｌｏｃｋ               ｔｈｅ               ｉｎｔｒｏｄｕｃｔｉｏｎ               ｏｆ               ｎｅｗ               ａｎｄ               ｓｕｐｅｒｉｏｒ               ｐｒｏｄｕｃｔｓ               (Ａｒｍｅｎｔａｎｏ               1999,               ｐ.

66).
               Ｍｏｒｅｏｖｅｒ,               ｐｒｅｄａｔｏｒｙ               ｐｒａｃｔｉｃｅｓ               ｈａｖｅ               ａ               ｈｉｇｈ               ｌｉｋｅｌｉｈｏｏｄ               ｏｆ               ｆａｉｌｕｒｅ               ｆｏｒ               ｔｈｅ               ｆｉｒｍ               ｗｈｏ               ｕｎｄｅｒｔａｋｅｓ               ｔｈｅｍ;               ｔｈｅ               ｆｉｎａｎｃｉａｌ               ｒｉｓｋｓ               ｏｆ               ｐｒｅｄａｔｉｏｎ               ａｒｅ               ｔｈｅｍｓｅｌｖｅｓ               ｔｒｅｍｅｎｄｏｕｓ               ｄｉｓｉｎｃｅｎｔｉｖｅｓ               ｆｒｏｍ               ｅｎｇａｇｉｎｇ               ｉｎ               ｔｈｅ               ｐｒａｃｔｉｃｅ,               ａｎｄ               ｈｉｓｔｏｒｙ               ｈａｓ               ｓｈｏｗｎ               ｅｘｔｒｅｍｅｌｙ               ｆｅｗ               ｕｎａｍｂｉｇｕｏｕｓ               ｉｎｓｔａｎｃｅｓ               ｏｆ               ｐｒｅｄａｔｏｒｙ               ｂｅｈａｖｉｏｒ.






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disadvantages of historical cost accounting
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disadvantages of historical cost accounting
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    오후 1:00

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    About 'historical cost accounting advantages'|..., mutton will be cheap relative to historical poultry prices and consumption may increase...in the first six months of 2005. The cost of the acquisition was 18,500,00 RMB...







    About 'historical cost accounting advantages'|..., mutton will be cheap relative to historical poultry prices and consumption may increase...in the first six months of 2005. The cost of the acquisition was 18,500,00 RMB...








                   Ｉｎ               ｏｒｄｅｒ               ｔｈａｔ               ａｎ               ｏｒｇａｎｉｚｅｄ               ｂｏｄｙ               ｏｆ               ｋｎｏｗｌｅｄｇｅ               ｍｉｇｈｔ               ｂｅ               ｃｌａｓｓｉｆｉｅｄ               ａｓ               ｓｃｉｅｎｃｅ,               ｉｔｓ               ｈｙｐｏｔｈｅｔｉｃａｌ               ｌａｗ               ｍｕｓｔ               ｂｅ               ｂａｓｅｄ               ｏｎ               ｆａｃｔｓ.

    Ｕｎｌｉｋｅ               ａｎｙ               ｏｔｈｅｒ               ｓｏｃｉａｌ               ｓｃｉｅｎｃｅ,               ｆａｌｌａｃｉｅｓ               ａｒｅ               ｔｈｅ               ｒｏｏｔ               ｏｆ               ｔｈｅ               ｔｅｃｈｎｉｑｕｅ               ｏｆ               ｔｈｉｎｋｉｎｇ               ｉｎ               ｅｃｏｎｏｍｉｃｓ.

    Ｅｃｏｎｏｍｉｃ,               ｓｏｃｉａｌ               ａｎｄ               ｐｏｌｉｔｉｃａｌ               ｉｎｓｔａｂｉｌｉｔｙ,               ｉｎ               ａｄｄｉｔｉｏｎ               ｔｏ               ｃｏｎｃｅｎｔｒａｔｉｏｎ               ｏｆ               ｗｅａｌｔｈ               ａｒｅ               ｔｈｅ               ｏｕｔｃｏｍｅｓ               ｏｆ               ｓｕｃｈ               ｗａｙ               ｏｆ               ｔｈｉｎｋｉｎｇ.
                   Ｆａｉｌｕｒｅ               ｏｆ               ｐｒｅｓｅｎｔ               ｅｃｏｎｏｍｉｃ               ｐｏｌｉｃｉｅｓ               ｔｏ               ｒｅａｌｉｚｅ               ｐｒｏｓｐｅｒｉｔｙ               ｍａｋｅｓ               ｉｔ               ｎｅｃｅｓｓａｒｙ               ｔｏ               ｒｅｖｉｅｗ               ｔｈｅ               ｆｏｕｎｄａｔｉｏｎｓ               ｏｎ               ｗｈｉｃｈ               ｔｈｅｓｅ               ｐｏｌｉｃｉｅｓ               ａｒｅ               ｂａｓｅｄ,               ａｎｄ               ｌｏｏｋ               ｆｏｒ               ａｌｔｅｒｎａｔｉｖｅ               ｐｏｌｉｃｉｅｓ               ｔｈａｔ               ｗｏｕｌｄ               ｒｅｆｌｅｃｔ               ｆａｉｒ               ｅｃｏｎｏｍｙ.
                   Ｉｎ               ｐｒｅｓｅｎｔ               ｅｃｏｎｏｍｉｅｓ,               ｆｕｎｄｓ               ｃａｎ               ｂｅ               ｒａｉｓｅｄ               ｔｈｒｏｕｇｈ               ｉｓｓｕａｎｃｅ               ｏｒ               ｂｏｒｒｏｗｉｎｇ               ｍｏｎｅｙ;
                   1.

    Ｉｓｓｕａｎｃｅ               ｏｆ               ｍｏｎｅｙ
                   Ｔｈｅ               ｍｏｎｅｔａｒｙ               ａｕｔｈｏｒｉｔｙ               (Ｃｅｎｔｒａｌ               ｂａｎｋ               ｏｒ               ＵＳ               Ｆｅｄ               ｂａｎｋ)               ｉｓ               ｔｈｅ               ｏｎｌｙ               ｎｏｔｅ-ｉｓｓｕｉｎｇ               ｉｎｓｔｉｔｕｔｉｏｎ.

    Ｐｒｅｓｅｎｔ               ｍｏｎｅｙ               ｉｓ               ｉｓｓｕｅｄ               ｉｎ               ｆｏｒｍ               ｏｆ               ｐａｐｅｒ               ｎｏｔｅｓ               ｏｒ               ｃｏｉｎｓ               ｍａｄｅ               ｏｆ               ｍａｔｅｒｉａｌ               ｏｆ               ｎｅｇｌｉｇｉｂｌｅ               ｃｏｓｔ.

    Ｔｈｅ               ｉｎｔｅｒｎａｔｉｏｎａｌ               ｍｏｎｅｔａｒｙ               ｓｙｓｔｅｍ               ｓｅｔｓ               ｒｕｌｅｓ               ｔｏ               ｃｏｎｔｒｏｌ               ｉｓｓｕａｎｃｅ               ｏｆ               ｍｏｎｅｙ               ｂｙ               ａ               ｓｔａｔｅ.

    Ｓｉｎｃｅ               ｍｏｎｅｙ               ｉｓ               ｓｔｉｌｌ               ｖｉｅｗｅｄ               ａｓ               ａ               ｃｏｍｍｏｄｉｔｙ,               ｔｈｅ               ｉｓｓｕａｎｃｅ               ｐｒｏｃｅｓｓ               ｉｓ               ｒｅｇａｒｄｅｄ               ａｓ               ａ               ｔｒａｎｓａｃｔｉｏｎ               ｏｆ               ｂｕｙｉｎｇ               ｍｏｎｅｙ.

    Ｍｏｎｅｙ               ｉｓ               ｓｏｌｄ               ａｔ               ｉｔｓ               ｆａｃｅ               ｖａｌｕｅ               ｆｏｒ               ａ               ｐｒｉｃｅ               ｔｏ               ｂｅ               ｐａｉｄ               ａｔ               ｉｓｓｕａｎｃｅ               ｏｒ               ａｔ               ｌａｔｅｒ               ｄａｔｅ.

    Ｆｏｒ               ｐｒｉｃｅ               ｔｏ               ｂｅ               ｐａｉｄ               ｏｎ               ｓｐｏｔ,               ｔｈｅ               ｍｏｎｅｔａｒｙ               ａｕｔｈｏｒｉｔｙ               ｉｓｓｕｅ               ｍｏｎｅｙ               ｃｏｖｅｒｅｄ               ｂｙ               ｃｕｒｒｅｎｃｙ               ｂａｃｋｉｎｇ               ｉｎ               ｆｏｒｍ               ｏｆ               ｐｒｅｃｉｏｕｓ               ｍｅｔａｌ               ｏｒ               ｆｏｒｅｉｇｎ               ｃｕｒｒｅｎｃｙ               ｒｅｓｅｒｖｅ.

    Ｆｏｒ               ｐｒｉｃｅ               ｔｏ               ｂｅ               ｐａｉｄ               ｏｎ               ｃｒｅｄｉｔ,               ｔｈｅ               ｍｏｎｅｔａｒｙ               ａｕｔｈｏｒｉｔｙ               ｉｓｓｕｅ               ｆｉａｔ               ｍｏｎｅｙ.

    Ａｇａｉｎｓｔ               ｔｈｅｓｅ               ｎｏｔｅｓ               ｉｔ               ｈｏｌｄｓ               ｍａｒｋｅｔａｂｌｅ               ｇｏｖｅｒｎｍｅｎｔ               ｓｅｃｕｒｉｔｉｅｓ.
                   2.

    Ｂｏｒｒｏｗｉｎｇ               ｍｏｎｅｙ
                   Ｓｉｎｃｅ               ｔｈｅ               ｐｏｗｅｒ               ｏｆ               ｔｈｅ               ｍｏｎｅｔａｒｙ               ａｕｔｈｏｒｉｔｙ               ｔｏ               ａｄｄ               ｔｏ               ｔｈｅ               ｎｏｔｅ               ｉｓｓｕｅ               ｉｓ               ｌｉｍｉｔｅｄ               ｂｙ               ｌａｗ               ｏｒ               ｅｃｏｎｏｍｉｃ               ｇｒｏｗｔｈ,               ｂｏｒｒｏｗｉｎｇ               ｉｓ               ｔｈｅ               ｏｎｌｙ               ｗａｙ               ｔｏ               ｒａｉｓｅ               ｆｕｎｄｓ               ｕｎｌｅｓｓ               ｍｏｎｅｙ               ｉｓ               ｇｒａｎｔｅｄ               ｆｏｒ               ｏｔｈｅｒ               ｔｙｐｅ               ｏｆ               ｂｅｎｅｆｉｔｓ.
                   Ａ               ｇｏｖｅｒｎｍｅｎｔ               ｍａｙ               ｂｏｒｒｏｗ               ｍｏｎｅｙ               ｆｒｏｍ               ｇｉａｎｔ               ｌｅｎｄｅｒｓ               ｏｒ               ｒｉｃｈ               ｃｏｕｎｔｒｉｅｓ.

    Ｉｔ               ｍａｙ               ａｌｓｏ               ｂｏｒｒｏｗ               ｍｏｎｅｙ               ｆｒｏｍ               ｐｕｂｌｉｃ               ａｇａｉｎｓｔ               ｍａｒｋｅｔａｂｌｅ               ｇｏｖｅｒｎｍｅｎｔ               ｓｅｃｕｒｉｔｉｅｓ.

    Ｆｕｎｄｓ               ａｒｅ               ｄｅｐｏｓｉｔｅｄ               ｉｎｔｏ               ｂａｎｋｉｎｇ               ａｃｃｏｕｎｔｓ.
                   Ｂａｎｋｓ               ｒｅｔａｉｎ               ｃｕｒｒｅｎｔ               ａｃｃｏｕｎｔｓ               ａｎｄ               ｂｏｒｒｏｗ               ｄｅｐｏｓｉｔｓ.

    Ｓｐｅｃｕｌａｔｉｖｅ               ａｃｔｉｖｉｔｉｅｓ               ａｎｄ               ｒｅｆｉｎａｎｃｉｎｇ               ｔｏｏｌｓ               ｉｎｊｅｃｔ               ｍｏｒｅ               ｌｉｑｕｉｄｉｔｙ               ｔｏ               ｔｈｅ               ｂａｎｋｉｎｇ               ｓｙｓｔｅｍ.

    Ｂａｎｋｓ               ｒａｉｓｅ               ｆｕｎｄｓ               ｂｙ               ａｃｔｉｖａｔｉｎｇ               ｔｈｅ               ｍｏｎｅｙ               ｃｒｅａｔｉｏｎ               ｐｒｏｃｅｓｓ.

    Ｂｏｔｈ               ｂｏｒｒｏｗｅｄ               ｄｅｐｏｓｉｔｓ               ａｎｄ               ｇｒａｎｔｅｄ               ｃｒｅｄｉｔｓ               ａｒｅ               ｉｎｃｒｅａｓｉｎｇ.

    Ｉｓｓｕｅｄ               ｍｏｎｅｙ               ｉｎ               ＵＳＡ               ａｓ               ａｔ               Ｊａｎｕａｒｙ,               2007               ｗａｓ               750.5               ｂｉｌｌｉｏｎ               ｄｏｌｌａｒｓ,               ｗｈｉｌｅ               ｃｏｍｍｅｒｃｉａｌ               ｂａｎｋ               ｍｏｎｅｙ               (ｉｎ               Ｍ2)               ｗａｓ               6.33               ｔｒｉｌｌｉｏｎ               ｄｏｌｌａｒｓ.
                   Ｒａｉｓｉｎｇ               ｆｕｎｄｓ               ｔｈｒｏｕｇｈ               ｉｓｓｕａｎｃｅ               ｏｆ               ｆｉａｔ               ｍｏｎｅｙ               ｏｒ               ｂｏｒｒｏｗｉｎｇ               ｍｏｎｅｙ               ｉｎｖｏｌｖｅｓ               ｅｎｃｏｕｒａｇｅｍｅｎｔ               ｏｆ               ｉｎｆｌａｔｉｏｎａｒｙ               ｆｉｎａｎｃｉａｌ               ａｃｔｉｖｉｔｉｅｓ.

    Ｍｏｒｅ               ｍｏｎｅｙ               ｉｓ               ｎｅｅｄｅｄ               ｔｏ               ｐａｙ               ｆｏｒ               ｔｈｅｓｅ               ａｃｔｉｖｉｔｉｅｓ.

    Ｉｎｔｅｒｅｓｔｓ               ｏｒ               ｐｒｏｆｉｔｓ               ａｒｅ               ｐａｉｄ               ｉｎ               ｒｅｔｕｒｎ               ｆｏｒ               ｌｅｎｄｉｎｇ.

    Ｐｒｏｆｉｔｓ               ｆｒｏｍ               ｓｙｎｔｈｅｔｉｃ               ａｐｐｒｅｃｉａｔｉｏｎ               ｏｆ               ａｓｓｅｔｓ               ａｒｅ               ｐａｉｄ               ｔｏ               ｓｐｅｃｕｌａｔｏｒｓ.

    Ｆｉｎａｎｃｉａｌ               ｃｏｒｒｕｐｔｉｏｎ               ｇｒｏｗｓ               ａｓ               ｒｅｓｕｌｔ               ｏｆ               ｔｈｅ               ｉｎｃｒｅａｓｅ               ｉｎ               ｐｕｂｌｉｃ               ａｎｄ               ｐｒｉｖａｔｅ               ｓｐｅｎｄｉｎｇ.

    Ｔａｘｅｓ               ａｒｅ               ｎｏｔ               ｏｎｌｙ               ｕｓｅｄ               ｔｏ               ｆｉｎａｎｃｅ               ｐｕｂｌｉｃ               ｓｅｒｖｉｃｅｓ,               ｂｕｔ               ａｌｓｏ               ｔｈｅｙ               ａｒｅ               ｕｓｅｄ               ｔｏ               ｓｅｔｔｌｅ               ｐｕｂｌｉｃ               ｄｅｂｔｓ,               ｐａｙ               ｉｎｔｅｒｅｓｔ               ｏｎ               ｐｕｂｌｉｃ               ｄｅｂｔｓ,               ａｎｄ               ｃｏｖｅｒ               ｆｉｎａｎｃｉａｌ               ｃｏｒｒｕｐｔｉｏｎ               ｉｎ               ｐｕｂｌｉｃ               ｓｅｃｔｏｒ.

    Ａｓ               ｃｏｓｔ               ｏｆ               ｐｒｏｄｕｃｔｓ               ｉｎｃｒｅａｓｅｓ,               ｂｕｓｉｎｅｓｓ               ｏｗｎｅｒｓ               ｇａｉｎ               ｍｏｒｅ               ｐｒｏｆｉｔｓ               ｔｏ               ｋｅｅｐ               ｕｐ               ｗｉｔｈ               ｔａｒｇｅｔ               ｐｒｏｆｉｔ               ｍａｒｇｉｎ.

    Ｓｉｎｃｅ               ｔｈｅｓｅ               ｆｉｎａｎｃｉａｌ               ａｃｔｉｖｉｔｉｅｓ               ｄｏ               ｎｏｔ               ｒｅｓｕｌｔ               ｉｎ               ａｎ               ｉｎｃｒｅａｓｅ               ｉｎ               ｎａｔｉｏｎａｌ               ｐｒｏｄｕｃｔ,               ｔｈｅ               ｖａｌｕｅ               ｏｆ               ｔｈｅ               ｃｕｒｒｅｎｃｙ               ｕｎｉｔ               ｄｅｃｌｉｎｅｓ               ｔｏ               ｒｅｆｌｅｃｔ               ａｎ               ｉｎｃｒｅａｓｅ               ｉｎ               ｔｈｅ               ｇｅｎｅｒａｌ               ｌｅｖｅｌ               ｏｆ               ｐｒｉｃｅｓ.

    Ｉｔ               ｉｓ               ｏｂｖｉｏｕｓ               ｔｈａｔ               ｔｈｅ               ｔｅｃｈｎｉｑｕｅ               ｏｆ               ｔｈｉｎｋｉｎｇ               ｉｎ               ｐｒｅｓｅｎｔ               ｍｏｎｅｔａｒｙ               ｓｙｓｔｅｍ               ｉｓ               ｂａｓｅｄ               ｏｎ               ｃｒｅａｔｉｏｎ               ｏｆ               ｉｎｔｅｎｔｉｏｎａｌ               ｉｎｆｌａｔｉｏｎ.
                   Ｕｎｌｉｋｅ               ｔｈｅ               ｎａｔｕｒａｌ               ｉｎｃｒｅａｓｅ               ｉｎ               ｐｒｉｃｅｓ               ｗｈｉｃｈ               ｒｅｆｌｅｃｔｓ               ａｎ               ｉｎｃｒｅａｓｅ               ｉｎ               ｔｈｅ               ｒｅａｌ               ｖａｌｕｅ               ｏｆ               ｐｒｏｄｕｃｔｓ,               ｉｎｔｅｎｔｉｏｎａｌ               ｉｎｆｌａｔｉｏｎ               ｉｓ               ｔｈｅ               ｓｏｕｒｃｅ               ｏｆ               ａｌｌ               ｅｖｉｌｓ;
                   Ａ               ｒｅｌａｔｉｖｅｌｙ               ｓｍａｌｌ               ｎｕｍｂｅｒ               ｏｆ               ｉｎｄｉｖｉｄｕａｌｓ               ａｎｄ               ｃｏｒｐｏｒａｔｉｏｎｓ               ｃｏｎｔｒｏｌ               ｈｕｇｅ               ｐｏｏｌｓ               ｏｆ               ｃａｐｉｔａｌ.

    Ａ               ｓｔｕｄｙ               ｂｙ               ｔｈｅ               Ｗｏｒｌｄ               Ｉｎｓｔｉｔｕｔｅ               ｆｏｒ               Ｄｅｖｅｌｏｐｍｅｎｔ               Ｅｃｏｎｏｍｉｃｓ               Ｒｅｓｅａｒｃｈ               ａｔ               Ｕｎｉｔｅｄ               Ｎａｔｉｏｎｓ               Ｕｎｉｖｅｒｓｉｔｙ               ｒｅｐｏｒｔｓ               ｔｈａｔ               ｔｈｅ               ｒｉｃｈｅｓｔ               1%               ｏｆ               ａｄｕｌｔｓ               ａｌｏｎｅ               ｏｗｎｅｄ               40%               ｏｆ               ｇｌｏｂａｌ               ａｓｓｅｔｓ               ｉｎ               ｔｈｅ               ｙｅａｒ               2000,               ａｎｄ               ｔｈａｔ               ｔｈｅ               ｒｉｃｈｅｓｔ               10%               ｏｆ               ａｄｕｌｔｓ               ａｃｃｏｕｎｔｅｄ               ｆｏｒ               85%               ｏｆ               ｔｈｅ               ｗｏｒｌｄ               ｔｏｔａｌ               ａｓｓｅｔｓ.

    Ｔｈｅ               ｂｏｔｔｏｍ               ｈａｌｆ               ｏｆ               ｔｈｅ               ｗｏｒｌｄ               ａｄｕｌｔｓ               ｏｗｎｅｄ               1%               ｏｆ               ｇｌｏｂａｌ               ｗｅａｌｔｈ.

    Ａｌｃｏｈｏｌｉｓｍ,               ｆａｍｉｌｉｅｓ               ｂｒｅａｋｉｎｇ               ｕｐ               ａｎｄ               ｉｎｃｒｅａｓｅｄ               ｃｒｉｍｉｎａｌ               ｒａｔｅ,               ｐｕｂｌｉｃ               ｄｅｍｏｎｓｔｒａｔｉｏｎｓ,               ｐｏｌｉｔｉｃａｌ               ｉｎｓｔａｂｉｌｉｔｙ               ａｎｄ               ｒｅｖｏｌｕｔｉｏｎｓ               ｒｅｐｒｅｓｅｎｔ               ａｄｄｉｔｉｏｎａｌ               ｃｏｓｔｓ               ｏｆ               ｃｏｎｃｅｎｔｒａｔｉｏｎ               ｏｆ               ｗｅａｌｔｈ.
                   Ｐｒｉｃｅｓ               ｓｏａｒ.

    Ｄｅｍａｎｄ               ｆａｌｌｓ.

    Ｅｘｐｏｒｔｓ               ｂｅｃｏｍｅ               ｍｏｒｅ               ｅｘｐｅｎｓｉｖｅ               ｔｏ               ｓｅｌｌ.

    Ｉｍｐｏｒｔｓ               ｉｎｃｒｅａｓｅ.

    Ｐｒｅｓｓｕｒｅ               ｆｏｒ               ｉｎｃｒｅａｓｅｄ               ｗａｇｅｓ               ｍｏｕｎｔｓ               ｔｏ               ｋｅｅｐ               ｕｐ               ｗｉｔｈ               ｃｏｎｓｕｍｅｒ               ｐｒｉｃｅｓ.

    Ｓｕｐｐｌｉｅｒｓ               ｒｅｓｐｏｎｄ               ｔｏ               ｔｈｅ               ｆａｌｌ               ｉｎ               ｄｅｍａｎｄ.

    Ｓｏｍｅ               ｇｏ               ｏｕｔ               ｏｆ               ｂｕｓｉｎｅｓｓ.

    Ｓｏｍｅ               ｒｅｄｕｃｅ               ｎｕｍｂｅｒ               ｏｆ               ｌａｂｏｒｓ.

    Ｓｉｎｃｅ               ｆｕｌｌ               ｅｍｐｌｏｙｍｅｎｔ               ａｎｄ               ｆａｓｔ               ｏｕｔｐｕｔ               ｇｒｏｗｔｈ               ａｒｅ               ｂｏｔｈ               ｐｒｏｍｏｔｅｄ               ｂｙ               ｈｉｇｈ               ｌｅｖｅｌ               ｏｆ               ｉｎｖｅｓｔｍｅｎｔ,               ｔｈｅ               ｄｅｃｌｉｎｅ               ｉｎ               ｏｕｔｐｕｔ               ｇｒｏｗｔｈ               ｒａｔｅ               ｍａｋｅｓ               ｕｎｅｍｐｌｏｙｍｅｎｔ               ｒａｔｅ               ｒｉｓｅ.

    Ｔｈｅ               ｖａｌｕｅ               ｏｆ               ｔｈｅ               ｍｏｎｅｔａｒｙ               ｕｎｉｔ               ｄｅｃｌｉｎｅｓ.

    Ｉｎｆｌａｔｉｏｎ,               ａｓ               ａ               ｒｅｓｕｌｔ               ｏｆ               ｔｈｅ               ｅｘｃｅｓｓｉｖｅ               ｅｘｐａｎｓｉｏｎ               ｏｆ               ｃｒｅｄｉｔ,               ｉｓ               ｒｅｓｐｏｎｓｉｂｌｅ               ｆｏｒ               ａｌｍｏｓｔ               ａｌｌ               ｆｉｎａｎｃｉａｌ               ｃｒｉｓｅｓ               ｉｎｃｌｕｄｉｎｇ               ｔｈｅ               Ｗａｌｌ               Ｓｔｒｅｅｔ               Ｃｒａｓｈ               ｏｆ               1929,               ｔｈｅ               2008               ＵＳ               Ｍｏｒｔｇａｇｅ               Ｃｒｉｓｉｓ,               ｔｈｅ               1997               Ａｓｉａｎ               Ｆｉｎａｎｃｉａｌ               Ｃｒｉｓｉｓ,               1998               Ｒｕｓｓｉａｎ               Ｆｉｎａｎｃｉａｌ               ｃｒｉｓｉｓ,               ａｎｄ               ｔｈｅ               Ｌａｔｉｎ               Ａｍｅｒｉｃａｎ               Ｄｅｂｔ               ｃｒｉｓｉｓ.

    Ｐｒｏｔｅｃｔｉｏｎ               ｏｆ               ｂａｎｋｉｎｇ               ｄｅｐｏｓｉｔｓ               ｉｓ               ｉｎｔｒｏｄｕｃｅｄ               ｔｏ               ｊｕｓｔｉｆｙ               ｓｕｐｐｏｒｔｉｎｇ               ｔｈｅ               ｆｉｎａｎｃｉａｌ               ｓｙｓｔｅｍ               ｉｎ               ｃａｓｅ               ｏｆ               ｃｒｉｓｉｓ,               ｂｕｔ               ｔｈｅ               ｐｒｏｃｅｓｓ               ｉｎｖｏｌｖｅｓ               ｓｏｃｉａｌ               ｏｐｐｒｅｓｓｉｏｎ               ａｓ               ｇｏｖｅｒｎｍｅｎｔｓ               ｕｓｅ               ｍｏｎｅｙ               ｏｗｎｅｄ               ｂｙ               ｉｎｎｏｃｅｎｔ               ｐｅｏｐｌｅ               ｔｏ               ｒｅｗａｒｄ               ｆｉｎａｎｃｉａｌ               ｉｎｓｔｉｔｕｔｉｏｎｓ               ｆｏｒ               ｔｈｅｉｒ               ｒｅｃｋｌｅｓｓ               ｅｘｃｅｓｓｉｖｅ               ｅｘｐａｎｓｉｏｎ               ｏｆ               ｃｒｅｄｉｔｓ.
                   Ｇｉａｎｔ               ｌｅｎｄｅｒｓ               ｇｅｎｅｒａｔｅ               ｉｎｔｅｒｅｓｔｓ               ａｎｄ               ｒｅｄｉｒｅｃｔ               ｌｏｃａｌ               ｅｃｏｎｏｍｉｃ               ｐｌａｎｓ               ａｎｄ               ｐｏｌｉｔｉｃａｌ               ｄｅｃｉｓｉｏｎｓ               ｉｎ               ｓｕｃｈ               ａ               ｗａｙ               ｔｏ               ｂｅ               ｉｎ               ｔｈｅｉｒ               ｆａｖｏｒ.
                   Ｂａｓｅｄ               ｏｎ               ｔｈｉｓ               ｔｅｃｈｎｉｑｕｅ               ｏｆ               ｔｈｉｎｋｉｎｇ,               ｔｈｅ               ｏｂｊｅｃｔｉｖｅ               ｏｆ               ｔｈｅ               ｍｏｎｅｔａｒｙ               ｐｏｌｉｃｙ               ｈａｓ               ｃｈａｎｇｅｄ.

    Ｗｈｉｌｅ               ｔｈｅ               ｐｒｉｍａｒｙ               ａｉｍ               ｏｆ               ａｎｙ               ｓｏｕｎｄ               ｍｏｎｅｔａｒｙ               ｐｏｌｉｃｙ               ｉｓ               ｔｏ               ｒｅａｃｈ               ａｎ               ｏｐｔｉｍａｌ               ｌｅｖｅｌ               ｏｆ               ｏｕｔｐｕｔ               ｇｒｏｗｔｈ               ｉｎ               ｏｒｄｅｒ               ｔｏ               ｍｅｅｔ               ｔｈｅ               ｅｃｏｎｏｍｉｃ               ｒｅｑｕｉｒｅｍｅｎｔｓ               ｏｆ               ｔｈｅ               ｃｏｍｍｕｎｉｔｙ               ａｎｄ               ｔｏ               ｅｎｓｕｒｅ               ｆｕｌｌ               ｅｍｐｌｏｙｍｅｎｔ               ｏｆ               ａｖａｉｌａｂｌｅ               ｌａｂｏｒ               ｆｏｒｃｅ,               ｔｈｅ               ｒｅａｌ               ｃｈｏｉｃｅ               ｂｅｃｏｍｅｓ               ｂｅｔｗｅｅｎ               ｍｏｒｅ               ｏｒ               ｌｅｓｓ               ｏｕｔｐｕｔ               ｇｒｏｗｔｈｓ               ｃｏｕｐｌｅｄ               ｗｉｔｈ               ｍｏｒｅ               ｏｒ               ｌｅｓｓ               ｉｎｆｌａｔｉｏｎ.

    Ｅｃｏｎｏｍｉｃ               ｇｒｏｗｔｈ               ｂｅｃｏｍｅｓ               ｄｅｐｅｎｄｅｎｔ               ｕｐｏｎ               ａｖａｉｌａｂｉｌｉｔｙ               ｏｆ               ｍｏｎｅｙ.

    Ｏｖｅｒ               ａｎｄ               ａｂｏｖｅ,               ｉｓｓｕａｎｃｅ               ｏｆ               ｍｏｎｅｙ               ｃｏｖｅｒｅｄ               ｂｙ               ｃｕｒｒｅｎｃｙ               ｂａｃｋｉｎｇ               ｉｎｖｏｌｖｅｓ               ｈｏａｒｄｉｎｇ               ｏｆ               ｍｏｎｅｔａｒｙ               ｒｅｓｏｕｒｃｅｓ.
                   Ｉｎ               ｏｒｄｅｒ               ｔｏ               ｌｅｓｓｅｎ               ｔｈｅ               ｇｈａｓｔｌｙ               ｉｍｐａｃｔｓ               ｏｆ               ｉｎｆｌａｔｉｏｎ,               ｍｏｎｅｔａｒｙ               ａｎｄ               ｆｉｓｃａｌ               ｐｏｌｉｃｉｅｓ               ａｒｅ               ｄｉｒｅｃｔｅｄ               ｔｏｗａｒｄ               ｃｏｎｔｒｏｌｌｉｎｇ               ｑｕａｎｔｉｔｙ               ｏｆ               ｍｏｎｅｙ.

    Ｔｈｅ               ｍｏｎｅｔａｒｙ               ａｕｔｈｏｒｉｔｙ               ｃｏｎｔｒｏｌｓ               ｉｎｔｅｒｅｓｔ               ｒａｔｅ,               ｂａｎｋ               ｄｉｓｃｏｕｎｔ               ｒａｔｅ,               ｂａｎｋｉｎｇ               ｌｉｑｕｉｄｉｔｙ               ｒａｔｉｏｓ,               ｑｕａｎｔｉｔｙ               ｏｆ               ｉｓｓｕｅｄ               ｆｉａｔ               ｍｏｎｅｙ,               ａｎｄ               ｒａｔｅ               ｏｆ               ｃｕｒｒｅｎｃｙ               ｅｘｃｈａｎｇｅ.

    Ｔｈｅ               ｇｏｖｅｒｎｍｅｎｔ               ｃｏｎｔｒｏｌｓ               ｐｒｉｃｅｓ,               ｗａｇｅｓ,               ｇｏｖｅｒｎｍｅｎｔ               ｓｐｅｎｄｉｎｇ,               ａｎｄ               ｔａｘｅｓ.

    Ａ               ｃｏｕｎｔｒｙ               ｍａｙ               ａｐｐｌｙ               ａ               ｓｐｅｎｄｉｎｇ               ｃｕｔ               ｐｏｌｉｃｙ               ａｔ               ｔｈｅ               ｅｘｐｅｎｓｅ               ｏｆ               ｒａｉｓｉｎｇ               ｕｎｅｍｐｌｏｙｍｅｎｔ               ｒａｔｅ               ａｎｄ               ｒｅｄｕｃｔｉｏｎ               ｉｎ               ｔｈｅ               ｒａｔｅ               ｏｆ               ｏｕｔｐｕｔ               ｇｒｏｗｔｈ.
                   Ｐｒｅｓｅｎｔａｔｉｏｎ               ｏｆ               ａｎ               ａｌｔｅｒｎａｔｉｖｅ               ｍｏｎｅｔａｒｙ               ｐｏｌｉｃｙ
                   Ｒｅｃｅｎｔ               ｖｏｉｃｅｓ               ｈａｖｅ               ｂｅｅｎ               ｒａｉｓｅｄ               ｔｏ               ｅｍｐｈａｓｉｚｅ               ｔｈｅ               ｎｅｃｅｓｓｉｔｙ               ｏｆ               ｇｅｔｔｉｎｇ               ｒｉｄ               ｏｆ               ｉｎｆｌａｔｉｏｎ.

    Ｗｉｔｈ               ｒｅｆｅｒｅｎｃｅ               ｔｏ               ｔｈｅ               Ｎａｔｉｏｎａｌ               Ｅｍｅｒｇｅｎｃｙ               Ｅｍｐｌｏｙｍｅｎｔ               Ｄｅｆｅｎｓｅ               (ＮＥＥＤ)               Ａｃｔ               ｏｆ               2011,               ＨＲ               2990               ｉｎｔｒｏｄｕｃｅｄ               ｂｙ               Ｃｏｎｇｒｅｓｓｍａｎ               Ｄｅｎｎｉｓ               Ｋｕｃｉｎｉｃｈ,               ｉｔ               ｉｓ               ｓｔａｔｅｄ               ｔｈａｔ               "ｔｈｅ               ｐｕｒｐｏｓｅ               ｏｆ               ｔｈｉｓ               ａｃｔ               ｉｓ               ｔｏ               ｃｒｅａｔｅ               ａ               Ｍｏｎｅｔａｒｙ               Ａｕｔｈｏｒｉｔｙ               ｗｈｉｃｈ               ｓｈａｌｌ               ｐｕｒｓｕｅ               ａ               ｍｏｎｅｔａｒｙ               ｐｏｌｉｃｙ               ｂａｓｅｄ               ｏｎ               ｔｈｅ               ｇｏｖｅｒｎｉｎｇ               ｐｒｉｎｃｉｐｌｅ               ｔｈａｔ               ｔｈｅ               ｓｕｐｐｌｙ               ｏｆ               ｍｏｎｅｙ               ｉｎ               ｃｉｒｃｕｌａｔｉｏｎ               ｓｈｏｕｌｄ               ｎｏｔ               ｂｅｃｏｍｅ               ｉｎｆｌａｔｉｏｎａｒｙ               ｎｏｒ               ｄｅｆｌａｔｉｏｎａｒｙ               ｉｎ               ａｎｄ               ｏｆ               ｉｔｓｅｌｆ,               …               ａｎｄ               ｔｏ               ａｂｏｌｉｓｈ               ｔｈｅ               ｃｒｅａｔｉｏｎ               ｏｆ               ｍｏｎｅｙ,               ｏｒ               ｐｕｒｃｈａｓｉｎｇ               ｐｏｗｅｒ,               ｂｙ               ｐｒｉｖａｔｅ               ｐｅｒｓｏｎｓ               ｔｈｒｏｕｇｈ               ｌｅｎｄｉｎｇ               ａｇａｉｎｓｔ               ｄｅｐｏｓｉｔｓ".
                   Ｔｈｅ               ｔａｒｇｅｔ               ｏｆ               ｏｐｔｉｍａｌ               ｏｕｔｐｕｔ               ｇｒｏｗｔｈ               ｗｉｔｈ               ｆｕｌｌ               ｅｍｐｌｏｙｍｅｎｔ               ｃａｎ               ｂｅ               ａｃｈｉｅｖｅｄ               ｗｉｔｈｏｕｔ               ｐｒｏｄｕｃｉｎｇ               ｉｎｆｌａｔｉｏｎ.

    Ｔｈｅ               ｉｄｅａ               ｉｓ               ｖｅｒｙ               ｓｉｍｐｌｅ.

    Ｔｗｏ               ｐａｒｔｓ               ａｒｅ               ｉｎｖｏｌｖｅｄ               ｉｎ               ｅａｃｈ               ｅｘｃｈａｎｇｅ               ｔｒａｎｓａｃｔｉｏｎ;               ａ               ｐａｙｅｒ               ｐａｙｓ               ａｎ               ａｍｏｕｎｔ               ｏｆ               ｍｏｎｅｙ               ａｎｄ               ａ               ｒｅｃｉｐｉｅｎｔ               ｒｅｃｅｉｖｅｓ               ｔｈｅ               ｓａｍｅ               ａｍｏｕｎｔ               ｏｆ               ｍｏｎｅｙ.

    Ｔｈｅ               ｅｘｃｈａｎｇｅ               ｐｒｏｃｅｓｓ               ｈａｓ               ｎｏ               ｅｆｆｅｃｔ               ｏｎ               ｔｈｅ               ｑｕａｎｔｉｔｙ               ｏｆ               ｍｏｎｅｙ               ｉｎ               ｈａｎｄｓ.

    Ｂａｓｅｄ               ｏｎ               ｔｈｉｓ               ｓｉｍｐｌｅ               ｔｒｕｉｓｍ,               ｔｈｅ               ｔａｒｇｅｔ               ｏｆ               ｅｃｏｎｏｍｉｃ               ｇｒｏｗｔｈ               ｃａｎ               ｂｅ               ａｃｈｉｅｖｅｄ               ｗｉｔｈ               ｃｏｎｓｔａｎｔ               ｑｕａｎｔｉｔｙ               ｏｆ               ｍｏｎｅｙ.

    Ｉｎｓｔｅａｄ               ｏｆ               ｃｏｎｔｒｏｌｌｉｎｇ               ｑｕａｎｔｉｔｙ               ｏｆ               ｍｏｎｅｙ,               ａｎ               ａｌｔｅｒｎａｔｉｖｅ               ｍｏｎｅｔａｒｙ               ｐｏｌｉｃｙ               ｃａｎ               ｂｅ               ｓｅｔ               ｔｏ               ｃｏｎｔｒｏｌ               ｍｏｖｅｍｅｎｔ               ｏｆ               ｍｏｎｅｙ               ｉｎ               ｏｒｄｅｒ               ｔｏ               ｅｎｓｕｒｅ               ｔｈａｔ               ｍｏｎｅｙ               ｉｓ               ｅａｒｎｅｄ               ｉｎ               ｒｅｔｕｒｎ               ｆｏｒ               ｃｏｎｔｒｉｂｕｔｉｏｎ               ｉｎ               ｐｒｏｄｕｃｔｉｖｅ               ａｃｔｉｖｉｔｉｅｓ.

    Ｎａｔｉｏｎａｌ               ｏｕｔｐｕｔ               ｉｓ               ｔｈｅ               ｒｅａｌ               ｃｕｒｒｅｎｃｙ               ｂａｃｋｉｎｇ.

    Ｔｈｅ               ｎｅｗ               ａｐｐｒｏａｃｈ               ｒｅｑｕｉｒｅｓ               ｔｒａｎｓｆｏｒｍａｔｉｏｎ               ｏｆ               ｐｒｅｓｅｎｔ               ｍｏｎｅｔａｒｙ               ｓｙｓｔｅｍ               ｔｏ               ａ               ｃｌｏｓｅｄ               ｍｏｎｅｔａｒｙ               ｓｙｓｔｅｍ.
                   Ａｃｃｏｒｄｉｎｇ               ｔｏ               ｔｈｅ               ｃｌｏｓｅｄ               ｍｏｎｅｔａｒｙ               ｓｙｓｔｅｍ,               ａ               ｇｏｖｅｒｎｍｅｎｔａｌ               ｍｏｎｅｔａｒｙ               ａｕｔｈｏｒｉｔｙ               ｗｉｌｌ               ｅｘｃｌｕｓｉｖｅｌｙ               ｐｒｏｖｉｄｅ               ａｌｌ               ｂａｎｋｉｎｇ               ｓｅｒｖｉｃｅｓ               ｉｎ               ｌｏｃａｌ               ａｎｄ               ｆｏｒｅｉｇｎ               ｃｕｒｒｅｎｃｉｅｓ.

    Ｃｕｒｒｅｎｃｉｅｓ               ａｒｅ               ｅｘｃｈａｎｇｅｄ               ａｔ               ｔｈｅ               ｖａｌｉｄ               ｍａｒｋｅｔ               ｅｘｃｈａｎｇｅ               ｒａｔｅ.
                   Ｗｉｔｈ               ｒｅｇａｒｄ               ｔｏ               ｍｏｎｅｙ               ｉｎ               ｌｏｃａｌ               ｃｕｒｒｅｎｃｙ,               ｃａｓｈ               ｍｏｎｅｙ               ｗｉｌｌ               ｂｅ               ｒｅｃａｌｌｅｄ               ｆｏｒ               ｃａｎｃｅｌｌａｔｉｏｎ               ａｎｄ               ｂａｎｋｉｎｇ               ｄｅｐｏｓｉｔｓ               ｗｉｌｌ               ｂｅ               ｔｒａｎｓｆｅｒｒｅｄ               ｔｏ               ｔｈｅ               ｍｏｎｅｔａｒｙ               ａｕｔｈｏｒｉｔｙ.

    Ｕｎｒｅｓｔｒｉｃｔｅｄ               ｉｎｔｅｒｅｓｔ-ｆｒｅｅ               ｄｅｐｏｓｉｔ               ａｃｃｏｕｎｔ               ｉｎ               ｔｈｅ               ｎａｍｅ               ｏｆ               ｔｈｅ               ｍｏｎｅｙ               ｏｗｎｅｒ               ｗｉｌｌ               ｂｅ               ｒｅｔａｉｎｅｄ               ｂｙ               ｔｈｅ               ａｕｔｈｏｒｉｔｙ.

    Ｓｉｎｃｅ               ａｌｌ               ｐａｙｍｅｎｔｓ               ｒｅｐｒｅｓｅｎｔ               ｔｒａｎｓｆｅｒｓ               ｂｅｔｗｅｅｎ               ａｃｃｏｕｎｔｓ               ｗｉｔｈ               ｔｈｅ               ｍｏｎｅｔａｒｙ               ａｕｔｈｏｒｉｔｙ,               ｔｏｔａｌ               ｏｆ               ｄｅｐｏｓｉｔｓ               ｗｉｌｌ               ｒｅｍａｉｎ               ｃｏｎｓｔａｎｔ.

    Ｔｈｅ               ｍｅｃｈａｎｉｓｍ               ｏｆ               ｔｈｅ               ｓｙｓｔｅｍ               ｉｓ               ｄｅｓｃｒｉｂｅｄ               ａｓ               ｆｏｌｌｏｗｓ;
                   Ｔｈｅ               ｍｏｎｅｔａｒｙ               ａｕｔｈｏｒｉｔｙ               ｗｉｌｌ               ｎｏｔ               ｉｓｓｕｅ               ｍｏｎｅｙ.

    Ｆｏｒ               ｓｕｎｄｒｙ               ｅｘｐｅｎｓｅｓ,               ｐｒｅｐａｉｄ               ｃａｓｈ               ｎｏｔｅｓ               ｉｎ               ｓｅｖｅｒａｌ               ｄｅｎｏｍｉｎａｔｉｏｎｓ               ｏｒ               ｐｒｅｐａｉｄ               ｅｌｅｃｔｒｏｎｉｃ               ｃａｒｄｓ               ｗｉｔｈ               ｏｒ               ｗｉｔｈｏｕｔ               ｃｅｉｌｉｎｇ,               ｗｉｌｌ               ｂｅ               ｉｓｓｕｅｄ               ｂｙ               ｔｈｅ               ｍｏｎｅｔａｒｙ               ａｕｔｈｏｒｉｔｙ               ａｎｄ               ｓｏｌｄ               ｔｏ               ｔｈｅ               ａｃｃｏｕｎｔ               ｈｏｌｄｅｒ               ｆｏｒ               ｉｔｓ               ｆａｃｅ               ｖａｌｕｅ.
                   Ｂａｎｋｉｎｇ               ｄｅｐｏｓｉｔｓ               ｗｉｌｌ               ｂｅ               ｒｅｐｌａｃｅｄ               ｂｙ               ｆｕｎｄｓ               ｒａｉｓｅｄ               ｂｙ               ｔｈｅ               ｍｏｎｅｔａｒｙ               ａｕｔｈｏｒｉｔｙ               ｉｎ               ｏｒｄｅｒ               ｔｏ               ｆｉｎａｎｃｅ               ｒｅａｌ               ｐｒｏｄｕｃｔｉｖｅ               ａｃｔｉｖｉｔｉｅｓ               ｔｈｒｏｕｇｈ               ｆｉｎａｎｃｉｎｇ               ｅｎｔｉｔｉｅｓ.

    Ｔｈｅ               ｍｏｎｅｔａｒｙ               ａｕｔｈｏｒｉｔｙ               ｗｉｌｌ               ｇｅｎｅｒａｔｅ               ｐｒｏｆｉｔｓ               ｏｕｔ               ｏｆ               ｐｒｏｖｉｓｉｏｎ               ｏｆ               ｆｕｎｄｓ.

    Ｐｒｏｆｉｔｓ               ｒｅｐｒｅｓｅｎｔ               ｎｅｗ               ｓｏｕｒｃｅ               ｏｆ               ｐｕｂｌｉｃ               ｒｅｖｅｎｕｅ.
                   Ｐｒｅｓｅｎｔ               ｉｎｔｅｒｅｓｔ-ｂａｓｅｄ               ｌｅｎｄｉｎｇ               ｓｙｓｔｅｍ               ｗｉｌｌ               ｂｅ               ｒｅｐｌａｃｅｄ               ｂｙ               ｃｕｒｒｅｎｔ               ｃａｐｉｔａｌ               ｆｉｎａｎｃｅ               ｓｙｓｔｅｍ.

    Ｆｉｎａｎｃｉｎｇ               ｅｎｔｉｔｉｅｓ               ｓｈａｌｌ               ｒｅｐｌａｃｅ               ｐｒｅｓｅｎｔ               ｂａｎｋｓ               ａｎｄ               ｌｅｎｄｉｎｇ               ｉｎｓｔｉｔｕｔｉｏｎｓ.

    Ｔｈｅｙ               ａｒｅ               ｈｉｇｈｌｙ               ｓｐｅｃｉａｌｉｚｅｄ               ａｎｄ               ｗｅｌｌ-ｅｑｕｉｐｐｅｄ               ｆｏｒ-ｐｒｏｆｉｔ               ｅｎｔｉｔｉｅｓ               ａｃｔ               ａｓ               ａｎ               ｉｎｔｅｒｍｅｄｉａｒｙ               ｔｏ               ｆｉｎａｎｃｅ               ｐｒｏｄｕｃｔｉｖｅ               ｐｒｏｊｅｃｔｓ               (ｏｒ               ｔｒａｄｉｎｇ               ｄｅａｌｓ)               ｕｎｄｅｒ               ｔｈｅ               ｓｕｐｅｒｖｉｓｉｏｎ               ｏｆ               ｔｈｅ               ｍｏｎｅｔａｒｙ               ａｕｔｈｏｒｉｔｙ.
                   Ｕｐｏｎ               ｒｅｑｕｅｓｔ               ｏｆ               ｔｈｅ               ｆｉｎａｎｃｉｎｇ               ｅｎｔｉｔｙ,               ｃｏｓｔ               ｏｆ               ｔｈｅ               ｐｒｏｊｅｃｔ               ｗｉｌｌ               ｂｅ               ｔｒａｎｓｆｅｒｒｅｄ               ｆｒｏｍ               ｉｔｓ               ａｃｃｏｕｎｔ               ｔｏ               ｔｈｅ               ａｃｃｏｕｎｔ               ｏｆ               ｔｈｅ               ｐｒｏｖｉｄｅｒ               ｏｆ               ｇｏｏｄｓ               ｏｒ               ｓｅｒｖｉｃｅｓ.

    Ｕｐｏｎ               ｒｅｑｕｅｓｔ               ｏｆ               ｔｈｅ               ｐａｙｅｒ,               ｒｅｖｅｎｕｅ               ｏｆ               ｔｈｅ               ｐｒｏｊｅｃｔ               ｗｉｌｌ               ｂｅ               ｔｒａｎｓｆｅｒｒｅｄ               ｆｒｏｍ               ｈｉｓ               ａｃｃｏｕｎｔ               ｔｏ               ｔｈｅ               ａｃｃｏｕｎｔ               ｏｆ               ｔｈｅ               ｆｉｎａｎｃｉｎｇ               ｅｎｔｉｔｙ.

    Ｔｈｅ               ｄｅｂｉｔ               ｂａｌａｎｃｅｓ               ｏｆ               ｔｈｅ               ｆｉｎａｎｃｉｎｇ               ｅｎｔｉｔｙ               ｗｈｉｃｈ               ｒｅｌａｔｅｓ               ｔｏ               ｔｈｅ               ｐｒｏｊｅｃｔ               ｗｉｌｌ               ｓｈｏｗ               ｔｈｅ               ｍｏｖｅｍｅｎｔ               ｏｆ               ｔｈｅ               ｃａｐｉｔａｌ               ｉｎｖｅｓｔｅｄ               ｂｙ               ｔｈｅ               ｍｏｎｅｔａｒｙ               ａｕｔｈｏｒｉｔｙ               ｉｎ               ｔｈｅ               ｐｒｏｊｅｃｔ.

    Ｔｈｅ               ｆｉｎａｎｃｉｎｇ               ｅｎｔｉｔｙ               ｗｉｌｌ               ｋｅｅｐ               ｓｅｐａｒａｔｅ               ｈｉｓｔｏｒｉｃａｌ               ａｃｃｏｕｎｔｉｎｇ               ｒｅｃｏｒｄｓ               ｆｏｒ               ｅａｃｈ               ｐｒｏｊｅｃｔ.
                   Ｔｈｅ               ｒｅｌａｔｉｏｎｓｈｉｐ               ｂｅｔｗｅｅｎ               ａ               ｆｉｎａｎｃｉｎｇ               ｅｎｔｉｔｙ               (ａｓ               ａｎ               ｉｎｔｅｒｍｅｄｉａｒｙ),               ｉｔｓ               ｃｕｓｔｏｍｅｒ               (ａｓ               ａ               ｐａｒｔｎｅｒ),               ａｎｄ               ｔｈｅ               ｍｏｎｅｔａｒｙ               ａｕｔｈｏｒｉｔｙ               (ａｓ               ａ               ｆｉｎａｎｃｉｅｒ)               ｗｉｌｌ               ｂｅ               ｂａｓｅｄ               ｏｎ               ｐｒｏｆｉｔ/ｌｏｓｓ               ｓｈａｒｉｎｇ               ｃｏｎｔｒａｃｔ.

    Ｔｈｅ               ｃｏｎｔｒａｃｔ               ｗｉｌｌ               ｓｐｅｃｉｆｙ               ｔｈｅ               ｉｎｉｔｉａｌ               ｃａｐｉｔａｌ               ｏｆ               ｔｈｅ               ｐｒｏｊｅｃｔ               ａｎｄ               ｔｈｅ               ｍｉｎｉｍｕｍ               ｃａｐｉｔａｌ               ｓｈａｒｅ               ｗｈｉｃｈ               ｓｈｏｕｌｄ               ｂｅ               ｍａｉｎｔａｉｎｅｄ               ｂｙ               ｔｈｅ               ｐａｒｔｎｅｒ.

    Ｉｔ               ｗｉｌｌ               ａｌｓｏ               ｓｈｏｗ               ｔｈｅ               ｐｒｏｆｉｔ               ｓｈａｒｅ               ｏｆ               ｅａｃｈ               ｐａｒｔｙ               ｉｎ               ｒｅｔｕｒｎ               ｆｏｒ               ｈｉｓ               ｅｆｆｏｒｔｓ               ｏｒ               ｗｏｒｋ.
                   Ｐｒｏｆｉｔ               ｉｓ               ｒｅｃｏｇｎｉｚｅｄ               ｏｎ               ｃａｓｈ               ｂａｓｅ               ａｆｔｅｒ               ｃａｐｉｔａｌ               ｉｓ               ｂｅｉｎｇ               ｆｕｌｌｙ               ｒｅｆｕｎｄｅｄ.

    Ｌｏｓｓ               ｉｓ               ｒｅｃｏｇｎｉｚｅｄ               ｂｙ               ｌｉｑｕｉｄａｔｉｏｎ               ｏｆ               ｔｈｅ               ｐｒｏｊｅｃｔ.

    Ｃａｐｉｔａｌ               ｒｅｆｕｎｄ               ｗｉｌｌ               ｂｅ               ｍａｄｅ               ｉｎ               ｐｒｏｐｏｒｔｉｏｎ               ｔｏ               ｔｈｅ               ｂａｌａｎｃｅ               ｏｆ               ｉｎｖｅｓｔｅｄ               ｃａｐｉｔａｌ.

    Ｏｎ               ｒｅｃｏｇｎｉｔｉｏｎ               ｄａｔｅ,               ｐｒｏｆｉｔ               ｓｈａｒｅｓ               ｉｎ               ｒｅｔｕｒｎ               ｆｏｒ               ｗｏｒｋ               ｗｉｌｌ               ｂｅ               ｐａｉｄ,               ａｎｄ               ｔｈｅｎ               ｂａｌａｎｃｅ               ｏｆ               ｐｒｏｆｉｔ               (ｏｒ               ｌｏｓｓ)               ｗｉｌｌ               ｂｅ               ｄｉｓｔｒｉｂｕｔｅｄ               ａｍｏｎｇ               ｔｈｅ               ｐａｒｔｎｅｒ               ａｎｄ               ｔｈｅ               ｆｉｎａｎｃｉｅｒ               ｉｎ               ｐｒｏｐｏｒｔｉｏｎ               ｔｏ               ｔｈｅ               ａｃｃｕｍｕｌａｔｅｄ               ｉｎｖｅｓｔｅｄ               ｃａｐｉｔａｌ               ｃｏｍｐｕｔｅｄ               ｏｎ               ｄａｉｌｙ               ｂａｓｅ.
                   Ｔｈｅ               ｃｌｏｓｅｄ               ｍｏｎｅｔａｒｙ               ｓｙｓｔｅｍ               ｈａｓ               ｍａｎｙ               ａｄｖａｎｔａｇｅｓ.

    Ｉｓｓｕａｎｃｅ               ｏｆ               ｍｏｎｅｙ,               ｂｏｒｒｏｗｉｎｇ,               ｏｒ               ｒｅｌｉａｎｃｅ               ｏｎ               ｆｏｒｅｉｇｎ               ｉｎｖｅｓｔｍｅｎｔｓ               ｗｉｌｌ               ｂｅ               ａｂｏｌｉｓｈｅｄ.

    Ｓｔｅａｌｉｎｇ,               ｓｍｕｇｇｌｉｎｇ               ｏｒ               ｈｏａｒｄｉｎｇ               ｏｆ               ｍｏｎｅｙ               ｗｉｌｌ               ｂｅ               ｄｉｓｃａｒｄｅｄ.

    Ｏｕｔｐｕｔ               ｇｒｏｗｔｈ               ｗｉｌｌ               ｎｏｔ               ｂｅ               ｄｅｐｅｎｄｅｎｔ               ｕｐｏｎ               ａｖａｉｌａｂｉｌｉｔｙ               ｏｆ               ｍｏｎｅｙ.

    Ｔｈｅ               ｉｎｆｌａｔｉｏｎａｒｙ               ｒｏｌｌ               ｏｆ               ｍｏｎｅｙ               ｗｉｌｌ               ｂｅ               ａｖｏｉｄｅｄ.

    Ｎｅｉｔｈｅｒ               ｉｎｔｅｒｎａｔｉｏｎａｌ               ｎｏｒ               ｎａｔｉｏｎａｌ               ｃｏｎｔｒｏｌｓ               ｏｖｅｒ               ｍｏｎｅｙ               ｓｕｐｐｌｙ               ｗｉｌｌ               ｂｅ               ｅｍｐｌｏｙｅｄ.

    Ａ               ｃｏｕｎｔｒｙ               ｗｉｌｌ               ｎｏｔ               ｂｅ               ｌｉａｂｌｅ               ｔｏ               ｒｅｔａｉｎ               ｃｕｒｒｅｎｃｙ               ｂａｃｋｉｎｇ,               ｆｏｒｅｉｇｎ               ｃｕｒｒｅｎｃｙ               ｒｅｓｅｒｖｅ,               ｏｒ               ｅｖｅｎ               ｌｉｑｕｉｄｉｔｙ               ｒｅｓｅｒｖｅｓ.

    Ｉｎｓｔｅａｄ               ｏｆ               ｓｅｅｋｉｎｇ               ｆｏｒｅｉｇｎ               ｆｕｎｄｓ,               ａ               ｇｏｖｅｒｎｍｅｎｔ               ｗｉｌｌ               ｕｓｅ               ｉｔｓ               ｒｅｖｅｎｕｅ               ｏｆ               ｆｏｒｅｉｇｎ               ｃｕｒｒｅｎｃｉｅｓ               ｔｏ               ｉｍｐｏｒｔ               ｆｏｒｅｉｇｎ               ａｓｓｅｔｓ.

    Ｓｉｎｃｅ               ｅａｃｈ               ｄｅｐｏｓｉｔ               ａｃｃｏｕｎｔ               ｗｉｌｌ               ｐｒｏｖｉｄｅ               ａ               ｃｏｍｐｌｅｔｅ               ｒｅｃｏｒｄ               ｏｆ               ｒｅｃｅｉｐｔｓ               ａｎｄ               ｐａｙｍｅｎｔｓ               ｏｆ               ｔｈｅ               ａｃｃｏｕｎｔ               ｈｏｌｄｅｒ,               ｔｈｅ               ｓｙｓｔｅｍ               ｗｉｌｌ               ｈｅｌｐ               ｃｒｅｄｉｔａｂｉｌｉｔｙ               ｓｔｕｄｉｅｓ               ａｎｄ               ｉｎｔｒｏｄｕｃｅ               ｅｆｆｅｃｔｉｖｅ               ｔｏｏｌ               ｔｏ               ｃｏｍｂａｔ               ｆｉｎａｎｃｉａｌ               ｃｏｒｒｕｐｔｉｏｎ,               ａｎｄ               ｅｌｉｍｉｎａｔｅ               ｉｌｌｅｇａｌ               ｏｐｅｒａｔｉｏｎｓ,               ｔａｘ               ｅｖａｓｉｏｎ,               ａｎｄ               ｐｒｏｃｒａｓｔｉｎａｔｉｏｎ               ｉｎ               ｐａｙｉｎｇ               ｄｅｂｔｓ               ｂｙ               ａ               ｗｅａｌｔｈｙ               ｍａｎ.

    Ｔｈｅ               ｃｕｒｒｅｎｔ               ｃａｐｉｔａｌ               ｆｉｎａｎｃｅ               ｓｙｓｔｅｍ               ｓｕｉｔｓ               ｄｉｆｆｅｒｅｎｔ               ｃａｓｈ               ｆｌｏｗｓ               ｏｆ               ｄｉｆｆｅｒｅｎｔ               ｐｒｏｊｅｃｔｓ               ａｎｄ               ｄｉｆｆｅｒｅｎｔ               ｃｕｓｔｏｍｅｒｓ.

    Ｔｈｅ               ｍｏｎｅｙ               ｃｒｅａｔｉｏｎ               ｐｒｏｃｅｓｓ               ｗｉｌｌ               ｎｏｔ               ｂｅ               ａ               ｖａｌｉｄ               ｉｓｓｕｅ.
                   Ｃｏｎｃｌｕｓｉｏｎ
                   Ｔｈｅ               ｖｉｅｗｓ               ｅｘｐｒｅｓｓｅｄ               ｈｅｒｅ               ａｒｅ               ｕｎｄｏｕｂｔｅｄｌｙ               ｄｒａｓｔｉｃａｌｌｙ               ｄｉｆｆｅｒｅｎｔ               ｆｒｏｍ               ｔｈｅ               ｖｉｅｗｓ               ｏｆ               ｏｔｈｅｒ               ｒｅｓｅａｒｃｈｅｒｓ.

    Ｈｏｗｅｖｅｒ,               ｆｉｎａｎｃｉａｌ               ｄｉｓｔｒｅｓｓ               ｉｓ               ｉｎｃｒｅａｓｉｎｇ               ａｎｄ               ｐｅｏｐｌｅ               ｗｉｌｌ,               ｓｏｏｎｅｒ               ｏｒ               ｌａｔｅｒ,               ｒｅａｌｉｚｅ               ｔｈｅ               ｔｒｕｔｈ               ａｎｄ               ｍａｋｅ               ｃｏｎｃｅｒｔ               ｅｆｆｏｒｔｓ               ｔｏ               ｇｒａｄｕａｌｌｙ               ｅｍｂｒａｃｅ               ａｎ               ａｌｔｅｒｎａｔｉｖｅ               ｓｙｓｔｅｍ               ｔｈａｔ               ｗｏｕｌｄ               ｒｅｆｌｅｃｔ               ａｄｖａｎｃｅ               ｔｈｅ               ｎｅｅｄｓ               ｏｆ               ｈｕｍａｎｉｔｙ               ａｓ               ａ               ｗｈｏｌｅ.
                   Ｙｏｕｒ               ｃｏｍｍｅｎｔ               ｗｉｌｌ               ｂｅ               ｈｉｇｈｌｙ               ａｐｐｒｅｃｉａｔｅｄ
                   ｍａｈｅｒｋａｂａｂｊｉ1@ｈｏｔｍａｉｌ.ｃｏｍ






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