Notes, summaries, assignments, exams, and problems for Economics

External Analysis: To detect Opportunities and Threats

Internal Analysis: To discover Strengths and Weaknesses

PEST Analysis: used by organizations to discover, evaluate, organize, and track macro-economic factors which can impact on their business now and in the future

Political • Change to the political system very often forces business to change its approach. Economic • Changes in the market conditions, such as the presence of new competitors, or simply changes in the economy. Social • Changes in society or culture, such as demographic change, Technological • Technological innovation can force changes in production techniques

SWOT: done to try to access the CURRENT & FUTURE situation of a product, brand, business… (at the beginning...

TOPIC 4: PRICING

The Role of Price in Marketing

Price plays a crucial role in generating revenue, establishing a company's desired value proposition, influencing buyer decisions, and reflecting the competitive landscape. It is a dynamic element that can be easily adjusted to define market share and respond to competitor actions. Pricing decisions may involve various levels of management, from executives in small businesses to dedicated teams in larger corporations.

4C's Model of Pricing

The 4C's model considers four key factors that influence pricing decisions:

• Corporation: The company's overall objectives, costs, and profit margins.
• Consumer: Customer demand, price sensitivity, and perceived value.
• Competitors: Competitor pricing strategies and market

Angel Investors

An angel investor (also known as a private investor) is an individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. The funds that angel investors provide may be a one-time investment to help the business get off the ground or an ongoing injection to support and carry the company through its difficult early stages.

Venture Capital

Venture capital is a type of funding for a new or growing business. It usually comes from venture capital firms that specialize in building high risk financial portfolios. With venture capital, the venture capital firm gives funding to the startup company in exchange for equity in the startup. This is most commonly found...

International Business Terminology

Certificate of Origin

A certificate of origin (CO) is a document that certifies the country of origin of goods being shipped. It is required by customs authorities of the importing country.

Intellectual Property

Intellectual property (IP) refers to legal rights that result from intellectual activity in various fields. Common forms of IP include patents, trademarks, copyrights, and trade secrets.

Transfer of Technology

The sharing of scientific information, technology, and manufacturing know-how between firms, universities, or other institutions is known as the transfer of technology.

Franchising

In franchising, a franchisee is allowed to use a trade name or trademark in offering goods or services to the public in...

1. Backward Integration

   Assuming a function previously provided by a supplier.

2. Bankruptcy

   A company gives up management of the firm to the court.

3. Competitive Strategies

   Cost leadership, differentiation, and focus.

4. Concentric Diversification

   Growth into a related industry with a strong competitive position.

5. Conglomerate Diversification

   Diversifying into an industry unrelated to its current one.

6. Cooperative Strategies

   The direction of the firm as a whole and the management of its business or product.

7. Corporate External Growth Strategies

   Funds to purchase other companies.

8. Defensive Tactics

   Takes place in the firm’s own current market position as a defense against rivals.

9. Economies of Scale

   Cost falls as the company benefits at a higher level.

10. Executive

The World Trade Organization (WTO)

Introduction

The establishment of the World Trade Organization (WTO) in 1995, following the Uruguay Round of negotiations under the General Agreement on Tariffs and Trade (GATT), represents a pivotal moment in the history of international trade. GATT, the precursor to the WTO, was founded in 1948 by 23 countries. It liberalized trade and fostered an environment that paved the way for the WTO's evolution. The WTO's scope is significantly broader than that of GATT, encompassing areas such as textiles, agriculture, services, and intellectual property, which were previously excluded under GATT.

Guiding Principles of the WTO

The core guiding principles of the WTO are:

• Non-discrimination among members in granting favors

The Great Depression: The Longest and Deepest Economic Downturn in American History

Causes of the Great Depression

In 1929, the prevailing economic theory held that the economy possessed self-correcting mechanisms that would prevent a severe depression. However, the Great Depression defied these expectations.

• Overproduction: Some economists believed the depression was caused by an excess of goods and services.
• Lack of Investment Opportunities: Others pointed to a decline in profitable investment opportunities.
• Technological Innovation: Joseph Schumpeter argued that the failure of entrepreneurs to introduce new products contributed to the depression.
• Stock Market Crash and Bank Panics: The stock market crash of 1929 and subsequent bank failures exacerbated

Understanding Key Concepts in International Trade

1. Trade Diversion and Trade Creation

Trade Diversion is a shift in the pattern of trade from low-cost world producers to higher-cost Custom Union or FTA members. It is often viewed as welfare-reducing for the world.

On the other hand, Trade Creation refers to the expansion in world trade that results from the formation of a preferential trade agreement.

2. Rules of Origin

Rules of Origin are the requirements that domestic producers or exporters must fulfill in order for their products to be considered as originating in a specific country and receive the benefits of tariff reductions. This measure is created to avoid trade deflection.

These rules define whether a good is eligible for duty-free treatment,...

Defining The Problem:

1st step is defining the problem. Problem Definition involves discussion with decision makers, interviews with experts, analysis of secondary data. Once defined, research can be designed and conducted properly.

Developing an Approach to the Problem:

Formulating an Objective or Theoretical Framework, analytical models, research questions, and Hypotheses, and identifying the information needed.

Research Design Formulation:

The Blueprint for conducting the market research project, which details the procedures necessary to obtain required information. The purpose is to design a study that will test the hypotheses, determine possible answers to the research questions, and provide information needed for decision making. Addressing...