The Affordable Care Act

The Affordable Care Act was one of the most important pieces of healthcare policy in decades. Despite all the controversy, Congress passed the law. In the post, we will go over the specifics of the law and its impact on the American healthcare system. Timeline of the Affordable Care Act 1. 2005 The American Medical Association, American…
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Letters of Credit

Letters of credit are an obligation of a bank, usually irrevocable, issued on behalf of their customer and promising to pay a sum of money to a beneficiary upon the happening of a certain event or events. Letters of credit are the substitution of the credit and good name of a bank for that of their customer, permitting the customer to do business…
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The iPod Index

In my previous post, using the nominal exchange rate we could compare the prices of iPods across countries. That was the simple version, and since it doesn't take inflation into account, it won't be as accurate. By calculating the Real Exchange Rate, we can get a more accurate answer to the question; which country has the cheapest iPod? Since an…
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Health Insurance (Pre-ACA)

Before the Affordable Care Act, there were three types of private health insurance markets, which were regulated by the state. There were the large groups, small groups, and individuals. Large Groups - Most large employers do not buy their health insurance, they are self-insured and employ insurance companies to be their administrators.…
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Barriers to Entry

Barriers to Entry are designed to prevent potential competitors from entering the market. Some barriers to entry are placed by the government, while others could be related to cost. These barriers result in different market structures such as monopolies or oligopolies (a few firms). Telecommunications and international logistics are the two…
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Trading Blocs

Trading blocs are a formal agreement between two or more regional countries that remove trade barriers between the countries in the agreement while keeping trade barriers for other countries. Types of Trading Blocs 1. Free Trade Area Two or more countries form a Free Trade Area in which trade barriers between the countries are abolished…
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