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Divestment: Divestment And Inflation

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DIVESTMENT:

Divestment is also known as divestiture. It is the opposite of an investment. It is the process of selling an asset for either financial, social or political goals. The Assets that can be divested incorporates subsidiary,hardware equipment and other property. At the point when a firm pull back from a particular geographic locale because of social or political pressure the investments are reduced and divestment occurs as a part of corporate strategy.
Selling of non-core businesses is the major reason for occurrence of divestment. Companies may possess diverse business units in various industries. This can beextremely diverting for their management teams. So, divesting a non-core business unit can strip off time for a parent company's …show more content…

A recession mostly goes for six to 18 months. At this period financing costs tumbles to animate the economy by offering shoddy rates to obtain cash.
The significant cause of recession is inflation. Inflation is the ascent in the prices of goods and services in a timeframe. The higher the rate of inflation, the smaller the percentage of goods and services that can be purchased with the same amount of money. Inflation occurs due to high production and energy costs.
Lessened consumer confidence is another component that can cause a recession. If consumers believe the economy is bad, they are less likely to spend money. Consumer confidence is psychological but can have a real impact on any economy. …show more content…

This is not necessarily true of the numbers in relative poverty. The way that relative poverty is defined means that it is always likely to identify a large number of impoverished households. However rich a country becomes, there will always be 10% of households poorer than the rest, even though they may live in mansions and eat caviar (albeit smaller mansions and less caviar than the other 90% of households). The Human Poverty Index (HPI), which was introduced in 1997, is a composite index which assesses three elements of deprivation in a country - longevity, knowledge and a decent standard of living. There are two indices, the HPI – 1, which measures poverty in developing countries, and the HPI-2, which measures poverty in OCED developed economies. HPI for developing countries (HPI-1) There are three elements to the HPI – 1. 1. The first element is longevity, which is defined as the probability of not surviving to the age of 40. 2. The second element is knowledge, which is assessed by looking at the adult literacy rate. 3. The third element is to have a decent standard of living. Failure to achieve this is identified by the percentage of the population not using an improved water source, and the percentage of children under weight for their age. Both indicate being deprived from a decent standard of living. HPI for developed (OECD) countries - HPI-2 The elements of the HPI – 2

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