OUR SERVICEIdentify the sources of spillovers

Spillovers are the effects that some seemingly unrelated events in one company may have on the finances of another company. Spillovers may be restricted to small scale or may be felt at a much larger scale. Spillovers often happen across national borders, making the correlation between the cause and he effect a lot less obvious than it usually would be.

Spillovers are not always necessarily a bad occurrence, sometimes, there are positive spillovers. however, in the case of a positive spillover, it is quite uncommon to investigate the source. Spillovers are an indirect effect of unrelated occurrences in a general context.

A spillover effect is much more obvious if it is a negative one, however, it may yet remain difficult to detect. The very nature of spillovers dictates that the source of the negative effects is seemingly unrelated to the effects, hence it requires the expertise of a professionals from a company like Heptagon group to detect and recommend the proper course of action.

Identify the sources of spillovers

How do spillovers affect the company?
The effects of spillover have been more pronounced since globalization in trade and stock markets deepened the connection between international companies. For instance, the trade relationship between Canada and the united states is such that if for some reason, the United states slows down its demand or importation of a certain commodity, the effects would be felt in Canada. This is because the united states are Canada’s main market across many export-oriented sectors. The result in such a scenario would be an excess of supply which would not be good for the Canadian companies. The fact that the Canada economy has is growing based on the business dealing with the united states would further accentuate any spillover effects, both positive and negative. If the consumer spending declines in the united states, being the major market for Canadian producers, the decline in customer spending would result in a decline in demand in the United states, as a build up of supply in Canada.
Another instance is the significant effects of spillover felt all over the world if any or both of the 2 largest economies were to suffer a major downturn. If china or the united states of America reduces their customer buying, the effects would be felt all over the world across several sectors and industries, including energy, grains and lots more.

How can we protect your company?
We offer professional services to identify the source of spillovers. We will thoroughly examine your company to determine the cause of the current spillover, as well as any other potential spillovers. We will provide your company with the necessary information to avoid the effects of any spillover, either current or potential so as to ensure that your company does not suffer any avoidable losses. We will also inform you of any positive spillover effect which the company can tap into in other to maximize efficiency and improve sales or reduce costs.
Hire Heptagon Group to help safeguard your company against negative spillover and help your company maximize positive spillovers. Schedule a survey now.

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