Management & Control of Economic Power

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Management & Control of Economic Power

July 21, 2021 Economics and Management 0

Economic power is defined by Business Directory as “Conditions of having sufficient productive resources at command that give the capacity to make and enforce economic decisions, such as resource allocation and apportioning of goods and services.” This qualitative definition may suffice for general discussions, but it lacks quantitative management and control measurements. Is there a mechanism to assess economic power in the twenty-first century for economic system study and synthesis? This chapter introduces a new theory for quantifying economic power that is based on a collection of concepts from the field of electrical engineering that are commonly used in the measurement and control of electrical power systems. Circuit theory concepts are used to demonstrate how the relationship between cash and cash flow in finance is analogous to the relationship between electric charge and current in electricity, and how education level, as an economic potential, is analogous to the electrical potential that causes current to flow in a circuit. The basic cash flow source in the economy is designated as a person. With a few instances, circuit models for an individual as well as a typical production facility are constructed and illustrated. There are equations for calculating economic power, losses, efficiency, and power factor. Individuals are demonstrated to be the primary cash flow sources and generators of economic power. Appendix A summarises electrical circuit concepts. Appendix B shows how investments might be made to maximise a firm’s economic strength.

Author (S) Details

Dr. Mohammed Safiuddin
STS International, US and University at Buffalo – SUNY, US.

View Book :- https://stm.bookpi.org/IEAM-V12/article/view/2073

 

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