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

1. Raw Materials and Services Defined

   • Raw materials are basic products.
   • Services refer to technical support.

2. Understanding Industrial Products

   An industrial product is defined as the combination of tangible and intangible aspects.

3. Industrial Product Development Process

   The process to develop new industrial products includes:

   1. Idea Generation
   2. Idea Screening
   3. Concept Development and Testing
   4. Business Analysis
   5. Product Development
   6. Market Testing
   7. Commercialization

4. Distribution Channel Decisions

   A distribution channel decision consists of determining the type and number of middlemen.

   • In the cardboard case, it was suggested to combine all distribution channels.
   • Distribution channels in industrial markets should be responsible for selling and promoting the products.

5. Total

Strategic Management: Analyses, Decisions, and Actions

Strategic management involves the analyses, decisions, and actions an organization undertakes to create and maintain competitive advantages.

Strategic Management Process

• Strategy analysis
• Strategy formulation
• Strategy implementation

Strategic Levels

• Corporate level
• Business level (Cost leadership, differentiation, specialization)
• Operational level

Mission and Vision

• Mission: Current picture of the company.
• Vision: Goal of the company in the long term.

Criteria for Selecting Meaningful Objectives

• Timely: Defined time frame.
• Realistic: Achievable goals.
• Appropriate: Consistent with the mission and vision.
• Measurable: Includes key performance indicators (KPIs).
• Specific: Clear and concise message.

Organizational

1) Business and New Technologies

Working from Home

Nowadays, new technologies are transforming the business landscape. This composition will explore some of these impactful technologies.

Firstly, working from home has emerged as a prominent trend. This new technique allows individuals to work for a company remotely, eliminating the need to be physically present in the workplace. Working from home offers both advantages and disadvantages.

Advantages of Working from Home

• Cost Savings: Working from home allows individuals to save on various costs associated with commuting to work.
• Flexibility: Workers can enjoy the flexibility of choosing their own work hours, lighting, and overall work environment, enabling them to work in a framework that maximizes

4) China (Crisis/ Devaluation of currency/ Economy)

In 1978, China was one of the poorest countries in the world, but since the market reforms in that year, it has become one of the most powerful economic countries with a great potential. Its GDP has grown about 10 percent per year during the last 30 years, being the country with the biggest economic growth around the world, thus the living standard has reached that of a welfare society because about 500 million people are out of poverty. Moreover, it is the largest manufacturing economy in the world, the most important exporter of goods, the fastest growing consumer market, and the second major importer of goods in the world. For these reasons, with a population of 1.3 billion, it has become...

International Trade Fundamentals

Imports of Goods and Services (% of GDP)

Imports of goods and services represent the value of all goods and other market services received from the rest of the world. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments.

Exports of Goods and Services (% of GDP)

Exports of goods and services represent the value of all goods and other market services provided to the rest of the world.

The Scope of International Trade and Government Regulation

The role of governments in regulating international trade and investment is substantial.

Types of International Trade

There are two primary types of trade:

• Interindustry Trade: Depends on differences across countries

Topic 4: World Trade Organization (WTO)

Trade barriers are measures that governments or public authorities introduce to make imported goods or services less competitive than locally produced goods and services.

Effect of Trade Barriers

• Cause a limited choice of products and, therefore, would force customers to pay higher prices and accept inferior quality.
• Generally favor rich countries because these countries tend to set international trade policies and standards.
• Economists generally agree that trade barriers are detrimental and decrease overall economic efficiency, which can be explained by the theory of comparative advantage.

Legal and Illegal Trade Barriers

Illegal barriers: Violate international agreements and rules.

Legal barriers: Do not violate...

Determinants of Pension Expenditure

Several factors influence pension expenditure. A lower cost can be achieved by decreasing the ratio of pensioners to the working-age population, increasing the unemployment rate, and decreasing the ratio of expenditure on pensions to productivity. Factors such as a low fertility rate and increased life expectancy contribute to this challenge. While immigration may offer a temporary solution, a conscious increase in expenditure seems inevitable in the future. The effects on spending depend on the listing rules and rules for calculating pensions based on contributions. Since the 1990s, two growing trends have emerged: employment records with higher prices and minimum pensions increasing productivity several...

Economy: From the Greek word for "one who manages a household".

It is the study of how society manages its scarce resources.

Scarcity: The limited nature of society's resources.

How Individuals Make Decisions

1st Principle: People Face Trade-offs

To get something we like, we usually have to give up something else we also like.

Society also faces a trade-off between efficiency and equity.

• Efficiency: Society getting the maximum benefits from its scarce resources.
• Equity: Distributing economic prosperity fairly among the members of society.

2nd Principle: The Cost of Something Is What You Give Up

Opportunity cost: Whatever must be given up to obtain some item.

3rd Principle: Rational People Think at the Margin

Marginal changes: Small incremental adjustments...

Wage Unit-VI

Wage means the compensation, whatever its denomination or method of calculation, that can be assessed in cash. It is payable by an employer to an employee for services or work already performed or to be performed, in accordance with the contract of employment. It is stipulated freely but may not be less than the minimum set according to the requirements of the law. For work of equal value, of the same nature or not, duration, and effectiveness, equal compensation shall correspond.

• Overtime work will be paid with 50% at least on the agreed salary for the ordinary workday.
• Night work will be paid with 30% of the regular wage set for work by day.
• Overtime at night will be paid a premium of 100% of the regular hourly wage.
• Hours worked

Types of Competition in Distribution Channels

Understanding the dynamics of competition is crucial for effective channel management.

1. Horizontal Competition

Intratypic Horizontal Competition

Opposes intermediaries of the same kind operating on the same level of the network.

Intertypic Horizontal Competition

Opposes intermediaries at the same level in a network, but with differences in the sales formula adopted. This can translate into differences in stock, choice, and pre-sale services.

2. Vertical Competition

Involves agents located at different levels of the distribution network, exercising intermediate or higher functions in the previous net. Example: Retailers performing wholesale functions.

3. Competition Between Distribution Networks

Entire networks...