Notes, summaries, assignments, exams, and exercises for Economics for Other courses

Values and Attitudes

Values and attitudes vary between nations, and even vary within nations. So if you are planning to take a product or service overseas make sure that you have a good grasp the locality before you enter the market. This could mean altering promotional material or subtle branding messages. There may also be an issue when managing local employees.

Education

The level and nature of education in each international market will vary. This may impact the type of message or even the medium that you employ.

Social Organizations

This aspect of Terpstra and Sarathy’s Cultural Framework relates to how a national society is organized.

Technology and Material Culture

Technology is a term that includes many other elements. It includes questions...

Financial Assets

A financial asset is any asset that is: cash, an equity instrument of another enterprise, or involves a contractual right to receive cash or another financial asset, or to exchange financial assets or liabilities with another party under potentially favorable conditions. They are also classified as a financial asset, any contract that may be or will be settled with equity instruments themselves, provided that:

• a) If it is derived, or may require the entity to accept a variable number of its own equity instruments.
• b) If it is derived, it cannot be, or will not be, settled by a fixed price for a fixed number of its own equity instruments.

Financial assets include obligations, bonds, notes, and other debt securities acquired; stocks,...

Classification of Activities

A) In Terms of Value Added

• Value-added activities: These activities enhance customer interest in the company's output (product or service).
• Non-value-added activities: These are activities that the customer does not perceive as valuable or that are not considered differentiating compared to the competition.

B) Based on Their Relationship with the Cost Objective (in Terms of Cost Causality)

• Activities related to production volume: These are activities whose costs depend critically on the volume (number of units) of production.
• Activities related to the organization of the production process (batch or order activities): These are activities whose costs are related to the number of processes at work in the company (e.g.,

Topic 1: Intro to FAB

Types of Businesses: Manufacturing (make & sell), Merchandising (buy & sell), Services (delivery etc.)

Business Structures: Sole Proprietorship -> owned and opened by 1 person; business is a separate entity from owner, owner is liable for debts. Partnership -> 2 to 20 partners; business is a separate entity from partners, partners are liable for debts.

Types of Partnerships: 1. General -> equal responsibility & unlimited liability. 2. Limited (Liability) -> 1 partner(s) not liable for debts beyond the agreed obligations. 3. Limited Liability Partnership (LLP) -> ≥2 partners are separate legal entities and are not liable for business debts. Business ceases if partner dies UNLESS have perpetual...

Step 1 Review the Marketing Plan

1. What product/service is being marketed?
2. What is known about the market where the brand will compete?
3. What are the brand's marketing objectives?
4. How is the marketing communication expected to contribute to the marketing objectives?

Step 2, Selecting a Target Group

1. What are the relevant target buyer groups?
- Select a primary target buyer group: Existing customers (repeat purchase) / Non-customer (trial)
- Potential target audiences in terms of brand attitudes: BL (Brand loyal), FBS (First brand switchers), OBL (Other brand loyal), OBS (Other brand switchers), NCU (Non-customers)
- Communication strategies will differ significantly, depending upon the target group.
+ If the target is primarily BL or FBS,...

Chapter 3: Business Organizations

There are five main forms of business organizations in the private sector:

1. Sole Traders
2. Partnerships
3. Private Limited Companies (PLCs)
4. Public Limited Companies (Ltd.)
5. Co-operatives

Key Business Terms

Limited Liability: This term refers to the owners of a company (shareholders). They are not held responsible for the debts of the company they own. Their liability is limited to the investment they made in buying the shares.

Partnership Agreement: A written and legal agreement between business partners. While not essential, it is always recommended.

Sole Traders: The most common form of business organization. It is a business owned and operated by one person.

Partnerships: A group or association between 2 and 20 people who...

Market Segmentation in Financial Institutions

Segmentation in a financial institution can occur in response to different situations. For example, segments can be created for new entrepreneurs, youth, pensioners, or based on age, income level, workplace, or social groups, including Small and Medium-sized Enterprises (SMEs).

Physical vs. Online Financial Institutions

Internet:

• Lower operating costs
• Access to new technologies
• Potential for cost savings and improved quality of proposals
• Drawback: Lack of personal contact, leading to a perception of coldness

Physical Entities:

• Higher operating costs
• Proposals may be of lower quality compared to online offerings
• Advantage: Direct customer interaction fosters trust and reliability

Types of Operations in Financial

Direct Costs

These are costs that can be directly evaluated; that is, it is possible to calculate their economic value.

Controllable Costs

These are all derived from actions that the company undertakes to prevent possible defects.

Costs Arising

These are costs that occur due to faulty production.

Indirect or Hidden Costs

These are costs that are difficult to calculate, and in many cases, not even perceived, but they exist.

Client-Side Costs

These cover the cost of replacement or compensation for defective products or poor services rendered.

Cost of Customer Dissatisfaction

This refers to when a customer pays for a product or service expecting minimum requirements to be met, and when they are not, it creates dissatisfaction.

Cost of Loss of Reputation

The...

Macroeconomic Variables and National Accounts Identities

Key Definitions of Income, Savings, and Consumption

• W: Labor Income Before Taxes
• NOS: Net Operating Surplus (Profits Before Taxes)
• Rg: Government Revenue (Income obtained from public properties)
• Cd: Private Consumption (Household consumption spending)
• Yd: Disposable Income (The sum of all household income in a country, after tax)
• Cg: Current Public Consumption (Government expenditures on current goods and services)
• Ig: Public Investment

Savings and Surplus Components

• Sg: Public Savings
  • Formula: Sg = Rg + Td + Ti - Zg - H - Cg
• Sf: Corporate Savings (Reserves/Undistributed profits)
• GOS: Gross Operating Surplus (Profit of firms)
  • Formula: GOS = Sales - Intermediate Consumption - Salaries
• NOS: Net Operating