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External Benefit |
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External Benefit The benefit of a transaction to parties who do not directly participate in it. Externality can be either positive or negative. For example, a merger can lead to higher share prices and bonuses for employees, benefiting shareholders and employees at the two companies merging. This can create wealth and positively impact a community. A transaction may have both external benefits and external costs: a transaction may result in a factory opening in one city and one closing in another. An external benefit is also called positive externality. See also: Externality. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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