Notes, abstracts, papers, exams and problems of Economy

1. Introduction: The European Union

Important dates: 7 enlargements:
- UK, Ireland, Denmark (1973)
- Greece (1981)
- Portugal and Spain (1986)
- Finland, Sweden, Austria (1995)
- 10 countries (2004)
- Bulgaria and Romania (2007)
- Croatia (2013)

7 treaties:
1. Treaty of Paris (1950): European Coal and Steel Community
2. Treaty of Rome (1957): EURATOM, EEC, ECSC.
3. Treaty of the European Single Act (1986): the Single Market.
4. Treaty of Maastricht (1991): the Treaty of the EU.
5. Treaty of Amsterdam (1996)
6. Treaty of Nice (2001)
7. Treaty of Lisbon (2009)

1 downsizing: Brexit (2019-?)

Aspects of the European Integration Model - Mechanisms:
- Single market.
- Customs Union.
- Single currency.
- European institutions.
- Interterritorial cohesion policies.
- Common... Continue reading "Understanding the European Union and Its Monetary Union" »

Dimensions of Information Systems

Describe the organizational, management, and technology dimensions of information systems.

• Organization: Such as the organization’s hierarchy, functional specialties, business processes, culture, and political interest groups.
• Management: Involves setting organizational strategies, allocating human and financial resources, creating new products and services, and re-creating the organization if necessary.
• Technology: Involves computer hardware, software, data management technology, and telecommunications technology.

Impact of Information Systems on Business

Describe how information systems have changed the way businesses operate and their products and services.

Wireless communications, including computers and mobiles,... Continue reading "Dimensions of Information Systems and Business Operations" »

Repayment:

Long-term debt is typically repaid in regular amounts over the life of the debt. The payment of long-term debt by installments is called amortization (usually arranged by a sinking fund. Each year the corporation places money into a sinking fund, and the money is used to buy back the bonds).

Seniority:

Indicates preference in position over other lenders. Some debt is subordinated. In the event of default, holders of subordinated debt must give preference to other specified creditors who are paid first.

Security:

It’s a form of attachment to property. It provides that the property can be sold in the event of default to satisfy the debt for which the security is given. A mortgage is used for security in tangible property. Debentures are... Continue reading "Understanding Long-Term Debt and Bond Indentures" »

Financial Soundness

Financial soundness is not at a satisfactory level. It is riskier compared to the previous year. The short-term debt, reflected in the debt-to-equity ratio, is higher than the previous year. For sound financial health, these ratios should have decreased.

Ability to Pay

The company's ability to manage short-term debts and immediate payments is weak. While the cash ratio and average collection days have slightly improved, indicating a favorable cash cycle, the overall ability to pay remains mediocre. The company demonstrates good punctuality but needs to improve its guarantees to enhance its ability to pay.

Profitability

The company's profitability has declined. Both Global ROA and ROE are worse than the previous year, indicating... Continue reading "Financial Health Analysis of a Company: A Comprehensive Review" »

Productivity

Productivity is the measure of output relative to the inputs used to create it.

Productivity Formulas

General Productivity: Quantity of Output / Quantity of Input

Labour Productivity: Output over a Given Period / Number of Employees

Production Methods

Lean Production

Lean production encompasses techniques used to minimize waste and maximize efficiency. This can involve reducing product development time and accelerating time to market.

Kaizen

Kaizen, a Japanese term meaning "continuous improvement", emphasizes eliminating waste to enhance efficiency.

Just-In-Time (JIT)

Just-In-Time (JIT) is a production method that aims to minimize or eliminate the need for finished goods inventory. Supplies arrive precisely when needed for production.

Production

What is Logistics?

Is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations.

Benefits of Supply Chains

When a business has an effective supply chain management, it has a CA in its industry that allows you to decrease the inherent risks when you are buying raw materials and selling products or services. The most important supply chain benefits are a higher efficiency rate, a decrease cost effects, increases output, increases your business profit level, boost cooperation lvl, no delays in processes and an enhanced supply chain network.... Continue reading "Logistics: Supply Chain Management and International Transport" »

Elasticity

Elastic demand: A high responsiveness of quantity demanded or supplied to changes in price.

Elasticity: An economics concept that measures the responsiveness of one variable to changes in another variable.

Inelastic demand: A low responsiveness by consumers to price changes.

Necessities vs. Luxuries

Necessities tend to have inelastic demands, whereas luxuries have elastic demands.

Short Run Versus Long Run

Price elasticity of demand is usually lower in the short run, before consumers have much time to react, than in the long run, when they have a greater opportunity to find substitute goods. Thus, demand is more price elastic in the long run than in the short run.

Competitive Dynamics

Goods that can only be produced by one supplier generally... Continue reading "Price Elasticity of Demand and Supply: Formulas and Examples" »

International Logistics

International logistics is the process of planning, implementing, and controlling the movement of goods from supplier to customer from one country to another. It describes the activities necessary to get materials to a manufacturing facility, through the manufacturing process, and out through a distribution system to the end user. The goal is to manage a global supply chain at a low cost while providing superior customer service. Firms now typically use electronic data interchange (EDI) via the Internet to coordinate the flow of materials into manufacturing, through manufacturing, and out to customers. This eliminates delays among suppliers, shippers, and the purchasing firm, and reduces paperwork. EDI can also help a... Continue reading "International Logistics, Trade, and Marketing Strategies" »

Master Budget

NPV