Notes, summaries, assignments, exams, and exercises for Economics for Baccalaureate

SWOT analysis: a form of strategic  that identifies and analyses the main internal strengths and weaknesses and external opportunities and threats that will influence the future direction and success of a business.

Internal vs. Foreign Markets

Develop internal markets within a country's natural geographic barriers. While foreign markets undergo internationalization (all productive or commercial activities in a context of globalization), the company performs outside its natural geographic markets. There are different degrees of internationalization:

• Exporting
• Direct investment (sales subsidiaries and production subsidiaries)
• Contractual arrangements for international cooperation (licensing, franchising, joint ventures, export consortia)

The Multinational Company

A multinational company is one that is not only established in its country of origin but also in other countries to conduct its business activities, including sales, purchasing, and production.

Benefits

Need for Company Capital

The need for a company's capital relates to the role of company resources and all activities designed to obtain the necessary funds and allocate them for the most rational use. This allocation aims to yield a higher return with less risk and cost.

Sources of Funding

Sources of Funding: By Origin

According to their origin, funding sources can be classified as:

• Internal Resources: Generated by the company itself, constituting reserve funds and depreciation.
• External Resources: Obtained from outside the firm, including contributions from partners, capital increases, loans issued by the company, and various forms of debt through loans and credits.

Sources of Funding: By Ownership

According to the title or ownership, resources can...

Expansion of the Crisis (1959-1975)

Economic Expansion (1959-1973)

The timid recovery in the fifties was quite worrying. It could have been without oil for lack of money. In 1957, the government incorporated technical experts in economics (technocrats) linked to the Opus Dei religious institution. The most prominent were Rubio (Minister of Finance) and Ullastres (Minister of Commerce), who prepared the Stabilization and Liberalization Plan of 1959.
Spain won the aid of the IMF and OEEC. The stabilization plan consisted of modifying autarky and establishing the foundations for the Spanish economy to progressively convert into a classic capitalist system. The economic situation as a result of applying autarky was absolutely disastrous, and

Microeconomics and Macroeconomics

Microeconomics: Studies the markets and their individual components.

Macroeconomics: Studies the overall operation of the entire market economy of a country or region.

Key Macroeconomic Indicators

Macroeconomic figures are the indicators that measure what is produced in a country, the total amount of benefits accruing to firms, etc. The main ones are:

• National Accounting: Uses income and production methods.
• Inflation Measurement: The Consumer Price Index (CPI) is used as an inflation indicator. Formula: (CPI Year 2 / CPI Year 1) * 100
• Employment and Unemployment Indicators: Other indicators include confidence in economic agents, interest rates, or equity.

Gross Domestic Product (GDP) and Gross National Product (GNP)

Marketing and Business

The Concept of Marketing

Marketing is the process of creating, communicating, and distributing value to satisfy consumer needs and establish lasting exchange relationships. It focuses on acquiring new customers while retaining existing ones, as they generate the majority of sales revenue. Marketing stimulates demand but does not create the need.

Marketing Guidelines

Marketing strategies vary depending on the market situation. Key approaches include:

• Production Orientation

  Focuses on lowering production costs to offer lower-priced products (e.g., Henry Ford's approach).

• Product Orientation

  Emphasizes producing the highest quality products, applicable when demand exceeds supply (e.g., early mobile phones).

• Sales Orientation

  Prioritizes

Topic 18: Annual Accounts Explained

Annual accounts are essential accounting documents that enterprises must prepare. These documents form a cohesive unit and must be compiled according to legal provisions. Their purpose is to provide a true and fair view of the company's assets, financial position, and results.

These annual accounts are deposited in the commercial register, making them accessible to various economic and social stakeholders, including shareholders, employees, government bodies, and financial institutions. They are prepared at intervals of 12 months.

Account Models: Normal vs. Abbreviated

Annual accounts can be filed using two models: normal and abbreviated. Companies may use the abbreviated model if, at the closing date of the...

Company

Definition: A company is an organization with a performance objective, producing goods and services. It is the basic unit of production. Companies work to select products and combine factors of production to achieve their objectives.

Through production activities, raw materials and intermediate products are transformed into end products using capital, labor, technology, and knowledge.

Business Classification Criteria

1. Goods and Services Produced

Businesses are classified according to the goods and services they produce.

2. Economic Sectors

Businesses are categorized by their economic sector.

3. Sub-sectors

Companies are defined by their specific activity within a sub-sector.

4. Legal Status

• Individual Companies: Private companies, often small

Financial Ratios Summary

Fund of Operation:

• AC - PC: The company has working capital, is in financial and asset balance, is not in default, and has no problems dealing with short-term debt.

Ratio of Availability:

• Available / PC: If the ratio is between 0.1 and 0.3, there are idle resources available.

Liquidity Ratio:

• AC / PC: If the ratio is between 1.5 and 1.6, the company has a revolving fund and is not in default.

Ratio of Warranty:

• Total Assets / Total Liabilities: If the ratio is 2, the company is in bankruptcy and cannot guarantee payment of its debts to creditors.

Human Resource Management

Human resources are managed for any organization and business. It is essential to have an area responsible for the administrative functions of staff, staff...