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

What is an Industry?

An industry refers to a group of enterprises or organizations that produce or supply similar types of goods or services. Industries form the backbone of any economy, as they drive production, generate employment, create wealth, and facilitate economic development.

Definition and Nature of an Industry

An industry encompasses:

• Firms producing homogeneous or closely related products (e.g., automotive industry includes car manufacturers).
• Economic activities grouped by function or output (e.g., tourism industry, banking industry).
• Sectors operating under similar market conditions, regulations, and technologies.

Industries can vary based on:

• Size (small-scale vs. large-scale),
• Ownership (private, public, cooperative),
• Nature of activity

Introduction

Hello, my name is Tomas Mastronardi. Today I'm going to discuss international trade and two important ideologies: free trade and protectionism. We'll also explore trade wars, global trade tensions, and conclude with a summary of the key arguments.

Free Trade

Free trade promotes the unrestricted flow of goods and services across borders. Proponents argue that removing barriers to trade leads to economic growth, efficiency, and consumer benefits. Free trade agreements, such as the North American Free Trade Agreement (NAFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), aim to reduce trade barriers and promote market access.

Protectionism

Protectionism, conversely, seeks to shield domestic industries... Continue reading "International Trade: Free Trade vs. Protectionism" »

Negotiation Process

Basic Elements in a Negotiation:

• Communication Process: It's the means through which negotiation results are constructed.
• Persuasion: Involves using words, silences (active listening), and gestures.
• Resolving Differences: Different needs enable value creation through idea generation.
• Result-Oriented: Focused on achieving win-win, win-lose, or lose-lose outcomes.
• Formal Process: Each phase contributes to the final result.
• Impacts Relationships: Cooperation positively affects negotiation outcomes.
• Cooperative Attitude: Parties work together for mutually beneficial solutions.

Closing Techniques:

• Summary Close: Summarize key points leading to a logical conclusion.
• Alternative Close: Offer two choices to move the deal forward.
• Artisan Close:

Carrier

A company that carries goods by road.

Freight Forwarder

A person or business that arranges documentation and travel facilities for companies dispatching goods to customers.

Supplier

A company that supplies parts or services to another company, also known as a vendor.

Haulier

A company that carries goods by road.

Courier

A company that specializes in the speedy and secure delivery of small goods and packages.

Consignee

A person or firm named in a freight contract to whom goods have been shipped or turned over for care.

Transshipment

The loading of goods from one means of carriage onto another.

Break-bulk

The packing of goods in small, separable units.

Cross-docking

The direct flow of goods from receipt at the warehouse to shipping, bypassing storage.

Marketing Fundamentals (Tema 1)

The Marketing Concept Defined

Marketing is the process of planning, designing, pricing, promotion, and distributing ideas, goods, and services in order to satisfy customer needs and achieve profitability.

The Marketing Process

The marketing process typically covers two main stages:

1. Market Research: Analyzing customers, competitors, and market factors.
2. Market Planning: Defining the product, price, place, and promotion (the Marketing Mix).

The Marketing Mix (The 4 Ps)

The Marketing Mix principles are controllable variables that must be carefully managed to meet the needs of the defined target group. All elements of the mix are linked and must support each other:

1. Product: The features and appearance of goods and services.

Spanish Accounting Regulations: ICAC

You can look up the accounting regulations in force for Spanish companies through the ICAC: Institute of Accounting and Auditing.

Balance Sheet Measurement: Historical Cost Principle

Elements in the balance sheet are usually measured based on the historical cost principle. This method records assets and liabilities at their original acquisition cost rather than their current market value. It provides a reliable and verifiable value, minimizing subjective estimates and fluctuations that could distort financial statements.

Importance of Accruing Expenses Correctly

Accruing expenses correctly each period is crucial because it ensures that financial statements accurately reflect a company’s financial position and... Continue reading "Essential Insights: Accounting, Finance, and EU Sustainability Reporting" »

BRICS: Formation & Core Pillars

Introduction to BRICS

BRICS is a group of five major emerging economies—Brazil, Russia, India, China, and South Africa. Established in 2009 (South Africa joined in 2010), BRICS aims to foster cooperation in economic, political, and cultural fields among developing nations and to create a multipolar world order.

Main Pillars of BRICS

• Political and Security Cooperation

  Promotes peace, security, and development.

  • Supports a multipolar world and democratic global governance.
  • Opposes terrorism and promotes UN reforms to make global institutions more representative.

• Economic and Financial Cooperation

  Focuses on trade, investment, infrastructure, and sustainable development.

  • Created the New Development Bank (NDB) to fund

Exercise 1

a) Adaptation

• Product:
  • Pro: Greater local acceptance.
  • Con: Increased production costs.
• Placement:
  • Pro: Improved accessibility.
  • Con: Logistical complexity.
• Price:
  • Pro: Enhanced local competitiveness.
  • Con: Inconsistent brand perception.
• Promotion:
  • Pro: Greater cultural relevance.
  • Con: Higher marketing campaign costs.

b) Standardization

• Product:
  • Pro: Economies of scale.
  • Con: Less adaptation to local tastes.
• Placement:
  • Pro: Logistical simplification.
  • Con: Less market coverage.
• Price:
  • Pro: Brand consistency.
  • Con: Less competitive in some markets.
• Promotion:
  • Pro: More cost-effective global campaigns.
  • Con: Less cultural effectiveness.

c) Suggested Decision

I would recommend a hybrid strategy, adapting key aspects (like flavor and promotion) to local markets while... Continue reading "Adaptation vs. Standardization in Marketing" »

Structure-Behavior-Performance Paradigm

The structure-behavior-performance paradigm, the basis of traditional industrial organization (IO), examines how companies behave within a given market structure. The new IO, however, inverts this logic, starting with how strategic behavior affects market structure. Both approaches agree that market structure influences market outcomes.

Defining Markets

Standard Production Classification

One method to define markets uses standard production classification. This system builds concentration data, but requires classifying multi-product companies. The procedure is:

1. Classify companies by their main product based on sales.
2. Calculate total sales for each market.
3. Calculate market shares and concentration indices.

Companies... Continue reading "Market Structure, Behavior, and Performance: Analysis" »

Topic 1: Business Finance Fundamentals

Methods of Raising Money

There are only two ways in which a business can raise money:

1. Debt: The firm makes a promise to make fixed payments in the future (principal plus interest).
2. Equity: The firm keeps the earnings, and this form of financing is perpetual.

Key Financial Decisions

• Working Capital Management Decisions: Deal with day-to-day financial matters and affect current assets and liabilities. Example: Deciding how much stock to keep on hand to avoid overstocking.
• Investment Decisions: Determine what long-term productive assets the firm will purchase. Example: Deciding whether to invest in long-term assets or projects, such as buying new machinery or launching a new product line.
• Financing Decisions: Determine