Externality

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Related to external: External locus of control

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.
References in periodicals archive ?
Apart from analysing trend, composition and debt service of India's external debt, the Report provides a comparative picture of India's external debt vis-a-vis other developing countries.
Mack Molding developed its dual gas-assist process to mold the base of an external refrigeration unit for semi-trailer trucks.
To cap it all, Brazil's external sector has been strengthened allowing Brazil to move into approximate balance on its external current accounts, thereby reducing the country's vulnerability to external shocks.
The external auditor's responsibility is to do the following:
Not only are insurers expected to spend more on external solutions such as hardware and packaged software, but many say they'll look more to outside professional services providers and consultants to develop, implement and manage complex technology projects.
The cubic shielding was complemented by a Helmholtz-like external coil pair to compensate for vertical field components.
Today, the only methods for attaching a computer or consumer electronics device to an External Serial ATA storage device is via the Firewire (1394), or USB interface, using bridge ASICs.
For example, evaluate whether management stresses a sound internal control environment; review the effectiveness and performance of external and internal auditors; confirm the independence of external auditors; review financial statements to ensure completeness; and review with management and external (or internal) auditors significant accounting and reporting policies.
External chills are shapes usually made of steel, iron, graphite, chromite or copper.
The IRS has discretion to waive an external audit requirement in three circumstances.
The ongoing maintenance expense, rigidity, and lack of flexible external connectivity inherent within most ERP systems have led some companies to question their value.