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

Global Integration and Local Responsiveness

The horizontal side of the diagram is labeled “Pressures for local responsiveness,” ranging from weak at the left end to strong at the right end. The vertical side on the left is labeled “pressures for global integration,” from weak at the lower end to strong at the upper end.

Global Integration and Local Needs

AI: The top-left quarter, corresponding to strong to medium pressures for global integration and weak pressures for local responsiveness, indicates the need to:

• Seek cost reduction through scale economies.
• Capitalize on converging consumer trends and universal needs.
• Provide uniform service to global consumers.
• Conduct global sourcing.

AD: The bottom-right quarter, corresponding to strong pressures...

The Organizational Environment and Resource Dependence

The environment refers to the set of forces surrounding an organization that can affect both its operations and its access to scarce resources. An organization attempts to manage these environmental forces to obtain the resources necessary for producing goods and services for its customers. Organizations depend on the environment to acquire essential resources, and the availability of these resources is influenced by factors such as the dynamism and abundance of the environment.

Resource Dependence Theory and Vulnerability

According to Resource Dependence Theory (RDT), the goal of an organization is to minimize its reliance on other entities for acquiring resources. Organizations that heavily...

Travel Agencies

Definition and Functions

A travel agency is a business that sells travel services like tours, cruises, transportation, accommodation, meals, and sightseeing to the public. It utilizes management practices such as division of labor and hierarchical authority to achieve its objectives, including customer satisfaction and profit generation. Acting as a representative of airlines, hotels, tour companies, and cruise lines, travel agencies cater to both leisure and business travelers.

Expert Advice and Packages

Travel agents provide valuable advice to tourists regarding climate, local culture, customs, and other essential information. They also play a key role in selling package holidays, drawing inspiration from pioneers like Thomas...

The Bretton Woods Conference

Today's monetary and financial system has its roots in the planning of a new economic order during the Bretton Woods Conference of 1944. The goal of the conference was to avoid another Great Depression like that of the 1930s by ensuring a stable international monetary and financial system and by building an open international trade system.

Following this objective, two plans were implemented:

The Keynes Plan (UK)

• Creation of a new international non-metallic currency, to determine the exchange rates between each of the national currencies.
• Creation of an international clearing union for international payments compensation.
• Building an international mechanism to stabilize the system by applying pressure on both surplus

Core Business and Marketing Definitions

Public Relations (PR)

Public relations embraces publicity but is broader; PR includes other ways of gaining favorable responses. Typical PR activities include:

• Donating money to charity
• Giving speeches
• Participating in community activities
• Sponsoring events
• Other public-facing activities

PR is the organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media.

Intensive Distribution

When customers limit their search efforts, products must be easily available. Intensive distribution is a strategy where the firm maximizes...

Singapore Taxable Benefits

• Accommodation: Fully taxable till YA2019
• Furniture & Fittings: Partially taxable
• Company car: Taxable based on cost and usage
• Rental: Interest deductible, royalties taxable
• Premium: Taxable

Non-Taxable Benefits

• Profits from operation of Singapore ships
• Interest from approved banks and finance companies
• Singapore dividends, CPF withdrawals, Government pensions
• Various distributions and annuities
• Overseas income of individuals

Allowable Deductions

• Interest, Rent, Repairs, Salaries, CPF, Medical expenses
• Professional fees, Foreign exchange loss

Special Deductions

• Patenting cost, R&D, Renovations, Trade fair participation
• Royalty payments, PHV & taxi deductions

Capital Allowances

• Depreciation rules and allowances for equipment
• Replacement

TOPIC 7: INTRODUCTION TO OPTIONS AND FUTURES

1. INTRODUCTION TO DERIVATIVES

Definition: financial instrument whose payoffs and values are derived from / depend on something else. Goals:

• To illustrate the economic function/application of derivatives
• Understand how derivative markets are organized
• Be aware of the main derivative markets

Risk: The chance that an investment's actual return will be different than expected. Risk includes the possibility of losing some or all of the original investment.

Types:Market risk: Change in the value of an asset due to changes in exchange rates, interest rates, inflation rates, bond prices, equity prices, or commodity pricesCredit risk: The other party fails to meet the agreed conditions (payments and dates). Example:...

Depreciation

Decline in value of long-term tangible assets such as buildings, furniture, or equipment. It is systematically recognized by accountants as depreciation expense over the useful lives of the affected assets.

Accrued Expense

Expenses that are recognized before cash is paid. An example is accrued salaries expense.

Book Value

Historical (original) cost of an asset minus accumulated depreciation to date.

Callable Bond

Bonds that the issuer, at its option, may pay off prior to maturity.

Amortization

(1) Systematic and periodic allocation of the costs of intangible assets to expense over their useful lives; (2) periodically transferring the discount on a note or a bond to interest expense.

Cash Equivalent

Investments securities that are for short-...

The Importance of Topic Sentences

Purpose of the Topic Sentence

A topic sentence is the most important sentence in a paragraph. It summarizes the main idea or thesis of the paragraph and helps organize the information within it. In formal writing, the topic sentence is usually the first sentence in a paragraph, but it doesn't have to be.

The topic sentence tells readers what the rest of the paragraph is about. All sentences after it should provide more information, prove the topic sentence with facts, or describe it in more detail.

Topic sentences also need to relate back to the thesis statement of the essay. The thesis statement is like a road map that tells the reader where the essay is going and how it will be treated.

Topic Sentences and Controlling

Distribution Channels

Three key flows define service distribution channels:

1. Information and Promotion Flow: Distribution of information and promotional materials to generate customer interest in purchasing the service.
2. Negotiation Flow: Reaching an agreement on the service features and terms to close the deal. Sell the right service to the right consumer.
3. Product Flow: Determining the delivery location.
   • People-processing and possession-processing services typically require physical facilities for delivery.
   • Information-processing services can often be delivered through electronic channels.

Service Location Strategies

Ministores

Create numerous small service factories to maximize geographic coverage.

Locating in Multipurpose Facilities

Establish service...