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

International Trade Policy Analysis

Impact of a 20% Tariff on Personal Computers

Given the following information, we will calculate the cost to consumers, the benefit to producers, the change in government revenue, and the deadweight costs of a proposed 20 percent tariff on personal computers.

Calculations for the 20% PC Tariff

With a 20% tariff, the price of personal computers increases from $2,000 to $2,400 (a $400 increase).

• Cost to Consumers (Loss in Consumer Surplus):
  The total loss in consumer surplus is the area of the trapezoid

Mercantilism (Dominant from The 16th to the 18th Century) - It's not efficient…Made a small group of people wealthy Emphasis on developing national power, building exports, getting bullion. Favored A large trade surplus, subsidizing big business, low wages.

Adam Smith - Is the "Father of Economics". Was a professor of Moral Philosophy in the Department of Logic. Made The Wealth of Nations in 1776. Describes the Building blocks of national economic wealth. Divisions of labor allows people To specialize Productivity rises up due to improvements in dexterity, ↓ use of Time, and lead to Interconnect Economy. Trade = another building block; leads People to act in their own self-interest. Argued FREE trade benefits all parties. NOT zero-sum "I... Continue reading "Economic Theories and Concepts: Mercantilism, Adam Smith, and More" »

Government Economic Policies

1) Economic growth: the government will always want the economy to grow. They can encourage growth through helping private business to grow, through low business taxes or through government involvement in growth sectors such as new high tech industries.

2) Prices: the government will want to make sure that the general level of prices in the economy is effectively managed. Prices need to rise in a relatively slow and predictable way so that future contracts can be made where both sides know the value of what they pay or receive. Government policies to control inflation might include reducing spending or raising taxes when prices start to rise.

3) Income distribution: all economies are characterized by inequalities in... Continue reading "Government Economic Policies and Financial Instruments" »

China's Carbon Footprint: Challenges and Progress

Every nation faces unique challenges and opportunities in mitigating its emissions. China, as the world's largest emitter of carbon dioxide and a significant player in the global economy, serves as a compelling example.

Understanding China's Carbon Footprint

China's rapid economic growth and industrialization have led to a substantial carbon footprint. The country's high energy demands, primarily met by fossil fuels, have resulted in significant emissions. Additionally, with its vast population, the demand for consumer goods continues to rise, further contributing to its environmental impact.

China's Commitment to Renewable Energy

Despite these challenges, China has made considerable efforts to address... Continue reading "China's Carbon Footprint: Challenges and Renewable Energy Progress" »

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