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 ?
Under the proposed guidelines, the SEC will handle the acceptance, processing and approval of applications for accreditation of external auditors supervised by financial sector regulators.
Our research showed that external workers, managers, and regular employees in organizations all viewed having external workers in their workforce as a positive experience overall.
The global lender said in case the country remained unable to fully implement these reforms, the external debt as a percentage of gross domestic product (GDP) could hit 60% double the ratio left behind by the PML-N government.
Public external debt###73,024###75,357###76,340###78,464
The BSP noted that growth in foreign portfolio investments of 17.3 percent end-December last year boosted external financial liabilities, as well as the increase in foreign direct investments and other investments.
A sum of $2.9 billion was spent on servicing outstanding stock of external debt during first six months of this fiscal.
Meanwhile, the country's external financial assets posted a modest growth despite the $2.6-billion decline in the BSP's reserve assets as of end-September 2018.
The report added that the external debt to total goods and service exports reached 195.8% in June 2018.
"To the extent that these currency fluctuations reflect capital outflows or significantly lower external inflows, they are credit negative for sovereigns with large external funding needs."
'More than one-third of total external debt is denominated in ringgit (34.3 per cent), mainly in the form of NR holdings of domestic debt securities and in ringgit deposits in domestic banking institutions.
The rise in external debt during the period was primarily due to the increase in foreign portfolio investment (FPI) in the debt segment of the domestic capital market included under commercial borrowings.
The figure of US$79.2 billion was a mere projection, which included private sector external debt and liabilities as well.