cross-subsidization

cross-subsidization

see SUBSIDY.

cross-subsidization

the practice by firms of offering internal subsidies to certain products or departments within the firm financed from the profits generated by other products or departments. Cross-subsidization is often used by diversified and vertically integrated firms as a means of financing new product development; DIVERSIFICATION into new areas; or to facilitate price cuts to match intense competition in certain of its markets. See VERTICAL INTEGRATION, PRICE-SQUEEZE.
References in periodicals archive ?
He also reminded the Prime Minister of Pakistan for the long-awaited demand of the Industry to abolish cross-subsidization on the export-oriented sector and segregation of the same in the tariff category.
Bilwani also reminded the Prime Minister of Pakistan for the long-awaited demand of the Industry to abolish cross-subsidization on export-oriented sector and segregation of the same in the tariff category.
At the heart of this resolution is the fundamental principle that to achieve a healthy, and thereby prosperous, society, we need cross-subsidization and solidarity in healthcare, whereby the rich support the poor, the well support the sick and the haves support the haves not.
5bn in FY 2020/2021, leaving only cross-subsidization of EGP 5.
Reducing cross-subsidization in electricity prices, efficient use of public-private-partnerships, and further accelerating investment in education would help improve the business environment, raise productivity, and go a long way toward promoting shared prosperity.
In particular, we would need to change prevailing policies on interconnection, unbundling, cross-subsidization, number portability, and the powers of the National Telecommunications Commission (NTC).
A special pricing committee is working on ending cross-subsidization among different regions.
The key focus areas discussed included, ensuring availability of iron ore and coal mines to existing steel plants, improving viability of the alloy and stainless steel sector, impact of Comprehensive Economic Partnership Agreements with Japan and Korea on the steel industry and rationalizing the railway freight structure so that there is no cross-subsidization.
This approach would have the "virtue," says the GAO, of "decreas[ing] the cross-subsidization present in the current premium structure.
Note, these measures are all relative to the Trend and CV variables only, and do not address additional cross-subsidization drivers such as those associated with group or revenue products, or those related to treatment of coverage levels.
Further, there shall be no cross-subsidization of the costs of plans within the Exchange by virtue of any assessments or higher healthcare provider reimbursement rates on commercial health plans outside the Exchange.
The move would ensure independent operations for all three major business lines with no cross-subsidization.