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

Corporate PR means the ways by which businesses seek to improve their ability to do business.

Corporate PR and Brand Identity

Building brand identities and corporate brands is the method and process of advocating a company's cause and credentials in the marketplace. The emphasis is on promoting a consistent and coherent corporate identity and image.

What Corporate PR Does

Corporate PR helps companies to shape and mould corporate presence, identity and reputation in the minds of customers, important stakeholders and other audiences.

It is important for an organization to invest in corporate PR initiatives to perpetuate its long-term corporate image and brand identity.

Effective corporate PR:

• Enhances a company's operations as well as increases its

... Continue reading "Corporate PR and CSR Strategies to Build Brand Reputation" »

Roles in Communication

• Motivating: employees and creating a proper cooperative environment.
• Reporting: providing data for decision-making and spreading goals.
• Controlling: performance of plans and behavior of members.
• Expressing: emotions about work achievements and relating organization with environment.

Communication Elements

• The sender: person transmitting the message.
• The receivers: recipients of the message.
• The message: information transmitted by sender.
• The channel: medium through which message is transmitted.
• The code: set of signs and symbols transmitting the message.
• The context: location, time, culture of participants.

Barriers to Communication

• Factors related to context: location or timing.
• Factors related to message/channel: noise.
• Factors related

... Continue reading "Effective Communication in Organizations: Roles and Elements" »

Strategic vs. Operative Marketing

• Strategic Marketing: Focuses on the long-term. The main goal is to contribute to competitive advantages.
• Operative Marketing: Focuses on the short-term. The main goal is to influence the consumer directly.

Transactional Marketing

Individual interests are more important than joint benefits, leading to individual maximization. It involves a pure exchange of a product for money and maintains a short-term relationship.

Relational Marketing

Selling involves more than just money; it creates economic, social, and psychological bonds. The process focuses on understanding what satisfies the customer. It is a psychological approach aimed at building long-term relationships.

Brand Definition

A brand is a set of elements, shapes,... Continue reading "Core Marketing Concepts: Strategy, Branding, and Segmentation" »

International Trade and Economic Organizations

Major Trade Agreements and Partnerships

• TTIP: Transatlantic Trade and Investment Partnership
• TPSEP: Trans-Pacific Strategic Economic Partnership Agreement
• CETA: Comprehensive Economic and Trade Agreement (Canadian-European Trade Agreement)
• CETA: Corporative Economic Trade Agreement
• DR-CAFTA: Dominican Republic-Central America Free Trade Agreement
• NAFTA: North American Free Trade Agreement
• GATS: General Agreement on Trade in Services
• GATT: General Agreement on Tariffs and Trade
• OBOR: One Belt One Road

Global Financial and Development Institutions

• WTO: World Trade Organization
• ITO: International Trade Organization
• EIB: European Investment Bank
• BIB: Banco Internacional de Desarrollo
• UNDP: United Nations Development

... Continue reading "Essential International Trade and Economic Acronyms" »

Core Marketing Concepts: The 4 Ps

Product

Design, development, branding, and packaging.

Place

The distribution channels used in moving products from the manufacturer to the consumer.

Price

Determining the monetary value charged for the product or service.

Promotion

Advertising, personal Word of Mouth (WOM) selling, sales promotions, direct marketing, and publicity.

International Marketing Strategies

Globalize/Localize

Differentiating your campaign based on the specific local context.

Standardize

Keeping the same core message and approach regardless of the market.

Product Standardization

Selling the exact same product abroad as sold at home. This strategy depends heavily on the product category. Note: Nondurable goods (consumed quickly) usually require... Continue reading "Key Definitions for International Trade and Global Marketing Strategy" »

Variable Costs are costs that vary in direct proportion to changes in output or the level of production. Possible Advantages:

• Dan, as a sole trader, has complete creative and management freedom.
• Dan can be more customer-focused due to constant interaction and communication with customers.
• Dan does not have to share the profit.

The Possible Limitations: The model assumes that all cameras are sold. Dan Electro might not be able to sell all of its cameras; therefore, the total revenue curve might not be accurate. The model is used under the assumption of unchanging conditions. Inflation and interest rates might indeed increase, which could affect the demand for the camera. The effectiveness of the model depends on the accuracy of the data. Dan might... Continue reading "Understanding Variable Costs and Business Strategies" »

Topic 1: Key Drivers of Change

Industry vs. Market

Michael Porter's Five Forces

... Continue reading "Understanding Industry Structure: A Deep Dive into Porter's Five Forces" »

Financial Institutions

Retail Banks: issuing shares or bonds-receiving deposits

Building societies: arranging mergers

Insurance companies: offering life insurance-providing pensions

Investment Banks: arranging or fighting takeover bids- arranging mortgages- giving financial advice to companies

Financial Terms

• Mortgage: is a loan to buy property
• Deposit: money you put in the bank
• Pension: money paid to retired person
• Stocks or Shares: securities representing part ownership of a company
• Capital: money invested in a business
• Bonds: are interest paying securities issues by companies that need to borrow money
• Takeover: company gains control of another one by buying its stocks
• Merger: two formerly separate companies join together

Legal and Financial Terms

• Conglomerates:

... Continue reading "Financial Institutions and Terms: Retail Banks, Investment Banks, and More" »

Balance of Payments (BoP)

Y = C + I + G + EX – IM = C + I + G + CA

When production > domestic expenditure = exports > imports = current account > 0 (surplus) and the trade balance is positive.

CA = S – I. If Savings < Investment: current account deficit (IM > EX)

Components of BoP

Current Account

The current account tracks flows of goods and services (imports & exports), income receipts (e.g., interests earned), and net unilateral transfers (gifts, remittances).

Financial Account

The financial account tracks flows of financial assets (shares, stocks) and foreign direct investment (FDI). It represents the difference between sales of domestic assets to foreigners and purchases of foreign assets by domestic citizens.

• Inflow (+):

... Continue reading "Understanding Balance of Payments (BoP) and Current Account Deficits" »

Investment & Trading

Key Concepts

Collateral: Assets a borrower uses to secure or guarantee a loan.

Shares: Certificates representing part ownership of a company.

Institutional Investors: Financial organizations that own a lot of shares.

Day Traders: People who buy and resell shares in a very short time, often just a few hours.

Raise Capital: To get money from investors with which to run a business.

Issue: To offer securities for sale to financial institutions and the public.

Market Dynamics

Bid-Offer Spread (Bulls & Bears): The difference between the buying (bid) and selling (offer) price of shares. Bulls are investors who buy shares expecting prices to rise, while bears sell shares anticipating price drops.

Market Makers: Traders who buy and... Continue reading "Finance Essentials: A Glossary of Key Terms" »