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> It's a rare for-profit institution provides services at cost. In a healthy market, competition forces down the price of services approach such that they appr
by rlpb 5y ago
> It's a rare for-profit institution provides services at cost.
In a healthy market, competition forces down the price of services approach such that they approach cost. A large profit margin can indicate a free market failure, such as a barrier to entry.
(it may also represent some kind of necessary capital investment for entry, but I don't think that's the case here)
- falcolas 5y ago> it may also represent some kind of necessary capital investment for entry, but I don't think that's the case here Discounting laws, registrations, offices, staff, etc., you would still have to distribute sufficient capital between nations to provide for the transfer of money before the actual money itself can be transferred. The shifting of money between entities within a single country can take several days, and most international money transfers are expected to happen in hours, not weeks. It's a low risk loan - given from one branch of your own company to another - but you still have to have the money to loan out.