Notes, summaries, assignments, exams, and exercises for Economics for Vocational training

Key Concepts in International Trade Economics

Market Structures Comparison

Oligopoly vs. Monopolistic Competition

• Oligopoly: Refers to a market dominated by a small number of firms, where each firm formulates its strategy based on anticipated actions of the others.
• Monopolistic Competition: Refers to firms that possess brands granting them a degree of monopoly power, but they compete against other firms offering differentiated products that are close substitutes.

Production Location Decisions

Outsourcing and Offshoring

• Outsourcing: Production contracted to another firm, which may be located either inside the home country or abroad.
• Offshoring: Refers to relocating some or all production activities to a foreign country.

Trade Patterns

Interindustry vs.

Reverse Engineering as a Source of Knowledge and New Technology

Working Backwards: Take a product produced by a competitor and devise a method of producing a similar product.

Result: A slightly different product and a slightly different production function.

Profit Theories for Describing Business Performance (e.g., Amazon)

Monopoly Theory of Economic Profits

• Some firms are sheltered from competition by high entry barriers.
• Sources of protection: economies of scale, high capital requirements, patents, monopoly over inputs, government protection (e.g., import prevention).
• Monopoly profits can arise because of luck or happenstance (being in the right industry at the right time).

Innovation Theory of Economic Profits

• Profits arise following successful invention

Assessing Growth Opportunities

Assessing growth opportunities includes planning new businesses, downsizing, and terminating older businesses. If there is a gap between future desired sales and projected sales, corporate management will need to develop or acquire new businesses to fill it.

The scope of strategic planning involves:

• Developing new business opportunities.
• Downsizing and eliminating older businesses.

The Strategic Planning Gap

This is a strategic planning gap for a major manufacturer of blank compact disks called Musicale (name disguised). The lowest curve projects the expected sales over the next five years from the current business portfolio. The highest describes desired sales over the same period. Evidently, the company wants to grow...

Challenges of Strategic Information Systems

Implementing strategic systems often requires extensive organizational change and a transition from one sociotechnical level to another. Such changes are called strategic transitions and are often difficult and painful to achieve. Moreover, not all strategic systems are profitable, and they can be expensive to build. Many strategic information systems are easily copied by other firms, so that strategic advantage is not always sustainable.

Unique Features of E-commerce and Digital Markets

E-commerce involves digitally enabled commercial transactions between and among organizations and individuals. Unique features of e-commerce technology include:

• Ubiquity: Available everywhere, at all times.
• Global Reach:

Wage Receipt: Contribution Basis & Income Tax Withholding

Social Security Contribution Basis

The Social Security (SS) contribution base comprises the total compensation received, whether in cash or in kind. It also includes the share of bonuses and other amounts due that are not on a monthly or periodic basis but are paid within the year.

Common Contingencies Base (BCC)

The remuneration payable is computed, excluding overtime. It includes the share of special bonuses. The resulting amount, falling between the basic minimum and maximum base, constitutes the contribution base for common contingencies. The IPREM (Public Multiple Effects Income Indicator) values are: €523.51/month, €17.75/day, and €6,390.13/year.

Professional Contingencies

Concept and Classification of Banking Operations

Banking operations are credit operations carried out by a financial institution in a professional manner. They are classified as:

• Passive Operations
• Active Operations
• Service Operations

Types of Banking Products

Common banking products include current accounts, savings accounts, fixed-term deposits, and certificates of deposit.

Characteristics of Opening Bank Accounts

Bank accounts can be opened by individuals or corporations and can be in domestic or foreign currency. Only individuals with the capacity to act can open an account. Those lacking capacity must do so through their legal representatives.

Who Can Open a Bank Account?

People with legal capacity can open a bank account.

Steps in the Process of

Definition: Checking Account

A checking account (current account) is an irregular deposit contract for money, with additional service agreements provided by the cash custodian. Under the current account contract, the bank, savings bank, or credit union receives funds on behalf of the owner of the account, provides custody, and agrees to make payments according to instructions for amounts up to the balance.

Irregular (Deposit Ownership) Contracts

An irregular deposit is one in which the depositary (receiver) acquires ownership of the thing deposited and agrees to return to the depositor (person who delivered it) at the expiration of the contract, otherwise the same nature and value. In irregular deposits the depositary becomes owner of the funds...

Market Types

Companies market their products on the market.

Market: Consists of a set of buyers and sellers of a product. There are different types of markets. Each of these conditions in a particular way the work of the Commercial Department.

Main Forms of Market

• Features Buyers:
  • Consumer Market: Products purchased by individual buyers or families. Distinguish between immediate consumption, when consumed frequently; lasting, if consumed in different periods of time; and services, if they are immaterial.
  • Industrial Market: Products purchased by companies for incorporation into the production process or for sale. Examples: Wood for furniture factories.
• Number and Types of Competitors:
  • Monopoly: There is only one company operating in the market. Example:

Functional Mobility in the Workplace

Functional mobility occurs within the firm and involves changing a worker's job so they perform functions other than those usually performed. Worker mobility between different occupational categories or groups is only possible if there are organizational reasons that warrant it and the time needed to address these causes. The employer may change the distribution of work in their company and, in particular, the roles of workers, provided they have the qualifications needed to perform the duties of the new position assigned to them and that mobility does not lead to a loss of occupational status, salary reduction, or impairment of their dignity.

Geographic Mobility and Transfers

Geographic mobility is caused...