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

1. Corporate Internationalization: Forms and Strategies

Corporate internationalization occurs when a company expands its business beyond its home country.

Main Forms of Internationalization

• Exports: The company produces in its home country and sells products abroad.
  • Example: A Spanish winery selling wine to Japan.
• Commercial Delegation: Production stays at home, but the company establishes a sales office or employs salespeople abroad.
  • Example: A French company with a sales office in Brazil.
• Production Plant Abroad: The company builds factories in the foreign country to produce and sell locally.

  This strategy helps reduce transport costs and avoid tariffs.

• Internationalization of Purchases: When a company buys materials or products from abroad.
• Imports:

१८५७ च्या उठावाचे परिणाम

१) १८५७ च्या उठावाचे परिणाम (थोडक्यात):

• ईस्ट इंडिया कंपनीचे शासन समाप्त: ब्रिटिश सरकारने ईस्ट इंडिया कंपनीचे भारतातील शासन संपवले आणि भारत थेट ब्रिटिश क्राउनच्या अधिपत्याखाली गेला.
• शासकीय बदल: १८५८ साली 'भारत शासन अधिनियम' लागू करण्यात आला. भारताचा व्हाइसरॉय नेमण्यात

Essential Functions of Stock Exchanges

Stock exchanges play a critical role in the financial ecosystem by performing several key functions that benefit investors, companies, and the national economy. These functions ensure market efficiency, safety, and capital mobilization.

1. Ensuring Marketability of Securities

   Stock exchanges serve as organized markets for the purchasing and selling of securities. By providing a ready and continuous market, they ensure that securities can be converted into cash without undue delay, thereby enhancing their liquidity and marketability.

2. Securities Evaluation and Price Determination

   The prices of securities are determined within stock exchanges through the interaction of investors’ demand and suppliers’ preferences.

Formal Business Correspondence

Inquiry: High-Performance Solar Panels

Dear Ms. Smith,

We are conducting a review of suppliers for high-performance solar panels suitable for large-scale urban projects. Your company’s products have come highly recommended.

We kindly request the following:

1. Detailed technical specifications of your solar panel models.
2. Current pricing and lead times for delivery.
3. Warranty and support policies.

Furthermore, we would appreciate any additional documentation, such as case studies or certifications, that highlights the performance of your products in urban environments.

We look forward to receiving your response at your earliest convenience.

Yours faithfully,

James Carter
Head of Sustainability Projects
Urban Infrastructure Co.... Continue reading "Business Communication Essentials: Inquiries, Quotations, and Vocabulary" »

Sustaining a Competitive Advantage

A competitive advantage must not only be created but also sustained over time. Sustaining a competitive advantage depends on several factors:

• Barriers to Imitation: Obstacles that prevent competitors from reproducing a competitive advantage. Examples include protected knowledge (patents, brands, etc.) and accumulated experience.
• Competitor's Ability to Imitate: The ease with which rivals can replicate a competitor's advantage.
• Industry Dynamism: As an industry undergoes more changes, competitive advantages tend to become more transitory.

Generic Competitive Strategies

The primary generic competitive strategies are Cost Leadership and Differentiation Strategy.

Cost Leadership Strategy

A company achieves a cost advantage... Continue reading "Achieving and Maintaining Business Success: Cost Leadership Strategies" »

Financial Markets and Institutions: Module 1

The Value of the Finance Industry

The finance industry plays a crucial role in the economy by facilitating the efficient allocation of capital and managing risk. Its value is generated through several key functions:

The Role of Secondary Markets

• Liquidity: Enabling assets to be quickly converted into cash.
• Price Information: Allowing investors to assess the value of investments.
• Low Transaction Costs: Facilitating cost-efficient trading.
• Risk Sharing: Distributing financial risks among investors.
• Economies of Scale: Enhancing efficiency in financial operations.

How Financial Markets Generate Value in the Economy

1. The Informational Role of Financial Markets

   Stock prices are set in financial markets, serving as

Microeconomics Practice Questions: Market Dynamics

Section 1: Time, Elasticity, and Substitutes

1. The time period over which supply and demand curves are drawn is important. If we increase the time period, we would expect the curves to become:

   • a. Demand and supply curves to become steeper
   • b. Demand and supply curves to become flatter (Increased time allows for greater adjustment, leading to higher elasticity.)
   • c. Demand curve to become flatter while the supply curve becomes steeper
   • d. The demand curve to become steeper while the supply curve to become flatter

2. Consider the market for Hershey’s chocolate. If the price of Godiva chocolate (a substitute) increased, we would expect the equilibrium price of Hershey’s chocolate to change by a larger percentage

Defining Financial Management and Its Objectives

Definition of Financial Management

Financial Management is the strategic planning, organizing, directing, and controlling of a firm's financial activities. It involves applying general management principles to the financial resources of the enterprise to ensure the efficient acquisition and optimal utilization of funds to achieve the firm's overall goals.

It answers three fundamental questions for the business:

• Investment Decision (Deployment): Where should the firm invest its funds for the long term? (Capital Budgeting)
• Financing Decision (Procurement): Where should the firm raise the required funds, and in what proportion? (Capital Structure)
• Dividend Decision (Distribution): How should the firm

Direct and Indirect Exporting

• Exporting
  • Exporting can be direct or indirect.
  • In direct exporting, the company sells to a customer in another country.
  • The Internet is becoming increasingly important.

Exporting may be done passively or actively. Passive exporting occurs when a business receives orders from abroad without actively looking for them. Active exporting involves developing policies for setting up systems for organizing the export function and for dealing with export logistics, documentation, and finance.

With indirect exporting, intermediaries handle most aspects of export deals. Returns are obviously lower. You lose control over final selling prices.

• Indirect Exporting: Products are sold to a third party who then sells them within the