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Externality
(redirected from External costs)

    Also found in: Dictionary/thesaurus, Wikipedia 0.02 sec.
Externality
The cost or benefits 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. On the other hand, the merger can drive a competitor out of business, which results in layoffs and reduced wealth, which can hurt a community. Externality is also called spillover or the neighborhood effect. See also: External benefit, External cost.
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Adding up all these external costs and dividing by spending on alcohol consumption, drunk driver risks appear to warrant an alcohol tax of roughly 30 percent of pre-tax prices.
Should alcohol taxes be raised? Alcohol tax rates have fallen by half ... by Parry, Ian W.H. / Regulation
The more successful sales you produce, the less of your profits will be taken away by external costs.
How to Make Real Money Dropshipping on EBay by Eric Daniels / Internet and Businesses Online community
The plan slashes capacity, payrolls, purchases and external costs, and calls for a review of scheduled investments," it said.
Iberia announces cost-cutting plan by AFP / AFP Global Edition
 
 
 
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