Difference between revisions of "Spin-off Effect"
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| − | In relation to [[ | + | In relation to [[economics]], a '''spin-off effect''' is the reaction to a new injection of capital in an economy. For example, if a [[multinational company]] builds a plant in a mid-sized town that employs five hundred people, not only will demand for general consumer goods, property etc. increase as a result (causing more employment) but smaller, local firms will inevitably set up to sell goods required by the plant and its workers. |
[[Category:Economics]] | [[Category:Economics]] | ||
Latest revision as of 18:55, August 1, 2009
In relation to economics, a spin-off effect is the reaction to a new injection of capital in an economy. For example, if a multinational company builds a plant in a mid-sized town that employs five hundred people, not only will demand for general consumer goods, property etc. increase as a result (causing more employment) but smaller, local firms will inevitably set up to sell goods required by the plant and its workers.