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

Business Functions and Logistics

• Core Functions: Administration, Human Resources (HR), Technology, Procurement
• Logistics & Operations: Inbound Logistics, Operations, Sales, Service, Outbound Logistics

Key Information Systems

Enterprise Resource Planning (ERP)

• Integrated system covering: Sales, Production, Finance, HR
• Characteristics: Complex, Costly

Supply Chain Management (SCM)

• Manages: Supply, Production, Distribution
• Covers: Inbound Logistics, Manufacturing, Outbound Logistics
• Focus: Inventory Cost reduction
• Related Concepts: Key Performance Indicators (KPI) for efficiency, Just-In-Time (JIT)

Customer Relationship Management (CRM)

• Types: Operational, Analytical, Collaborative
• Process: Capture customer data, Analysis, Change business processes
• Goals:

Loan Amortization Methods

Bullet Method

• OLEY₀ = P
• OLBYt = OLTYt−1 (Same until last year)
• It = EAR · OLBYt (Constant until last year)
• PBt = 0 (Except last year, where PBt = P)
• At = It + PBt (Constant until last year)
• OLEYt = OLBYt − PBt (Must be 0 in the last year)

Straight Line Method

• OLEY₀ = P
• PBt = P/n (Constant every year)
• OLBYt = OLEYt−1 (Decreases every year)
• It = EAR · OLBYt (Decreases every year)
• At = It + PBt (Decreases every year)
• OLEYt = OLBYt − PBt (0 in the last year)

Annuity Method

• OLEY₀ = P
• A = P · EAR · (1 + EAR)ⁿ / ((1 + EAR)ⁿ − 1) (Constant every year)
• OLBYt = OLEYt−1 (Decreases every year)
• It = EAR · OLBYt (Decreases every year)
• PBt = A − It (Increases every year)
• At = It + PBt = A (Constant)
• OLEYt = OLBYt − PBt (

1. Shifters of Supply and Demand

• Supply Shifters: Price of related goods, input prices, technology, expectations, and number of producers.
• Demand Shifters: Price of related goods, income (normal vs. inferior), tastes/preferences, expectations, and number of customers.
• Distinction: Change in quantity supplied/demanded (movement along the curve, caused by the price of the good) vs. Change in supply/demand (shift of the curve, caused by external factors).

2. Comparative vs. Absolute Advantage

• Absolute advantage: Producing more output with the same resources.
• Comparative advantage: Lower opportunity cost per unit produced.
• Formula for opportunity cost: "Other thing / something".

3. Production Possibility Frontier (PPF)

• Shifters:
  • Factors of production (land,

India's banking system is a well-structured and regulated system, primarily overseen by the Reserve Bank of India (RBI). This document details its structure and evolution.

🏦 1. Regulatory Body: Reserve Bank of India (RBI)

• Established: 1935 (under the RBI Act, 1934)
• Role:
  • Regulates the issue and supply of currency.
  • Acts as the banker to the government and commercial banks.
  • Formulates and implements monetary policy.
  • Supervises and regulates financial institutions and markets.

🏛️ 2. Structure of the Banking System in India

A. Scheduled Banks

Listed in the Second Schedule of the RBI Act, 1934, they maintain a minimum reserve with the RBI.

i. Commercial Banks

These banks operate for profit and constitute the largest group in the Indian banking system.... Continue reading "India's Banking System: Structure, Evolution, and Future" »

Monopoly vs. Perfect Competition

The main differences between a monopolist and a competitive firm are that in the case of a monopoly, there is greater scope for establishing the price, although this control is not absolute. The monopoly firm has more freedom to adjust both the price and the quantity produced in their attempt to maximize profits.

Social Impact and Price Discrimination

From society's point of view, a monopoly involves less desirable effects than those derived from economic competition. In general, a monopoly results in lower production of goods and services than would result under competitive conditions, often with higher prices. Another common practice of a monopoly is price discrimination, which involves charging different prices... Continue reading "Monopoly vs. Perfect Competition: Key Market Differences" »

Balance Sheet: Interpreting Changes

Income Statement: Performance

TCC Multifamily and BSI Analysis

• Why BSI? They possess a strong track record (2002–2010), major clients, over 30 years of experience, and deep staff/client ties. They maintain efficient inventory with a sub-45-day turnover.
• Backlog: A large backlog may signal an inability to meet current demand; always check the contract balance.
• BSI Projections: Projections appeared unrealistic due to even numbers, which looked fabricated.
• TCC Scope: They operate as a multi-family subcontractor specializing in student, senior, and high-rise housing.
• 2011 Industry: The industry was rebounding post-crash with pent-up demand and thawing credit markets.
• $20k Goodwill: This represented brand value, deal urgency, and "Fuck You" money.

Basin Climbing Gym Case Study

Partnerships

Fundamental Accounting Equations

• Assets = Liabilities + Equity
• Net Income = Revenues - Expenses
• Gross Profit = Sales - Cost of Goods Sold (COGS)
• Operating Income = Gross Profit - Operating Expenses
• Income Before Tax = Operating Income ± Non-operating Items
• Net Income = Income Before Tax - Tax Expense
• Ending Retained Earnings = Beginning Retained Earnings + Net Income - Dividends

Cash Flow and Adjusting Entries

• Free Cash Flow = Operating Cash Flow - Capital Expenditures
• Change in Cash = Cash Flow from Operating + Investing + Financing
• Accrued Revenue → Revenue ↑, Receivable ↑
• Accrued Expense → Expense ↑, Payable ↑
• Deferred Revenue → Unearned Revenue ↓, Revenue ↑
• Prepaid Expense → Prepaid Asset ↓, Expense ↑
• Depreciation → Depreciation

Business Entity Fundamentals

• Entities:
  • Natural person (1 owner)
  • Moral person (+2 owners)
• Source of Capital:
  • Private (individuals)
  • Public (state)
  • Mixed (individuals and state)
  • Domestic (Mexicans/national)
  • Foreign
• Act Developed:
  • Trade
  • Manufacturer
  • Service
• Countries Operate:
  • National
  • Multinational
• Purpose:
  • For-profit
  • Non-profit

Financial Reporting Standards (IFRS)

All entities keep accounting records as measured following Financial Reporting Standards (IFRS).

Accounting Definition

Accounting: Methodical and systematic record of the daily operations of an economic entity.

IFRS Ethics Principles

• Integrity: Honest
• Objectivity: No conflict of interests
• Competition: Update knowledge
• Confidentiality
• Professionalism: Comply with laws

Accounting Information Systems

System: Set of elements... Continue reading "Key Business and Accounting Concepts" »

Global Economic Governance and Trade

Globalization (Globalización): The world is more connected for trade, capital, and people crossing borders. Big groups like the OMC (WTO), FMI (IMF), and Banco Mundial (World Bank) help countries trade and provide loans when needed.

International Institutions

• WTO / OMC (Organización Mundial del Comercio): Controls global trade rules.
• IMF / FMI (Fondo Monetario Internacional): Lends money to countries in financial trouble.
• World Bank / BM (Banco Mundial): Provides loans for development projects.

International Trade Balances

• Trade Deficit (Déficit comercial): Occurs when a country imports more than it exports.
• Trade Surplus (Superávit comercial): Occurs when a country exports more than it imports.
• Balance of Payments