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

Key Business and Marketing Terms

Marketing Mix

The four key decisions that must be taken in the effective marketing of a product.

Random Sampling

Every member of the target population has an equal chance of being selected.

Stratified Sampling

This draws a sample from a specified sub-group or segment of the population and uses random sampling to select an appropriate number from each stratum.

Quota Sampling

When the population has been stratified and the interviewer selects an appropriate number of respondents from each stratum.

Cluster Sampling

Using one or a number of specific groups to draw samples from and not selecting from the whole population.

Stakeholders

People or groups who can be affected by and therefore have an interest in any action by an... Continue reading "Key Business & Marketing Terms: Definitions & Concepts" »

Understanding Tourism Systems

Elements of Leiper's Tourism System

Tourist: The human element, individuals on tourist trips.

Traveler Generating Region (TGR): The origin of tourist trips, where they begin and typically end.

Tourism Destination Region (TDR): The location where tourists engage in their main visiting activities.

Transit Routes: The paths tourists take between TGR and TDR, where their main traveling activity occurs.

Tourism Industry: A collection of organizations providing tourism-related services.

Tourism Demand

Three Major Concepts:

1. Effective Demand: The actual number of people participating in tourism.
2. Suppressed Demand: Individuals who desire to travel but are unable to due to various constraints.
3. No Demand: Those with no interest in traveling.

The Role of Institutions in Economic Growth

Conditions for Beneficial Institutions

Several conditions contribute to the emergence of institutions that foster economic growth:

• Political Checks and Balances: Institutions that limit the power of political actors, such as through a balance of power, encourage the development of sound economic institutions.
• Broad Distribution of Power: When political power is dispersed among a wider group with substantial investment opportunities, the likelihood of favorable economic institutions increases.
• Limited Rent Extraction: Restricting the ability of those in power to extract excessive rents from society discourages the establishment of institutions that facilitate exploitation.

North and Thomas's Perspective

According... Continue reading "Economic Growth and Institutions: A Comprehensive Analysis" »

Global Entry Strategies

1. Exporting

Low risk, low control

Producing goods in one country and selling them in another.

2. Franchising

Low-moderate risk, low-moderate control

A contractual agreement between the firm (the franchisor) and another firm or individual (the franchisee). Allows the franchisee to operate a business using the name and business format of the franchisor.

3. Strategic Alliance

Moderate risk, moderate control

Collaborative relationships between independent firms - they do not invest in one another.

4. Joint Venture

Moderate-high risk, moderate-high control

When a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared.

5. Direct Investment

High

Consumer Society and Environmental Impact

It is often said that we live in a Consumer Society; we consider it important to buy products and services. Companies need to be aware of the impact of this on the Environment, the natural world around us.

Corporate Responsibility and Sustainability

Many companies use Packaging (boxes, bottles) which has been Recycled, that is, made using old materials. Pollution, such as smoke in the air, can be reduced if companies use trains instead of road transport.

Raising Capital: Stocks and Bonds

A company can raise money on the Stock Market or Stock Exchange (a marketplace for buying and selling shares) in two different ways:

1. Issuing Shares (US Stocks), or units of its capital, to Institutional Investors.
2. Issuing

N09/3/GEOGR/BP1/ENG/TZ0/XX

Global Population Dynamics and Health

1. Analyzing Population Trends and Health Impacts

(a) Describing Trends in Fertility and Literacy Rates

Referring to the graph, describe the trends in the two rates:

• Total female literacy rate increases over time.
• Global fertility rate decreases over time.

(Note: Responses should include specific quantification from the graph.)

(b) Reasons for Global Fertility Rate Trends

Suggest three reasons for the trend in global fertility. Reasons may include references to developed and/or developing regions, or a combination:

• Increasing emancipation of women, leading to choices for fewer children.
• Increasing educational opportunities providing career paths, thus delaying marriage or the first child.

Understanding Insurance Risk

Risk is involved in any situation in which some kind of loss or misfortune is possible. These can include:

• Financial: Loss of savings due to catastrophe.
• Physical: Health, welfare, or inability to secure income.
• Material: Home, vehicle, or property.

What is Insurance?

Insurance: Provides compensation for loss and spreads the cost of sharing risk.

When to Purchase Insurance

Purchase insurance when the probability of loss is small but the cost of loss is devastating. For example, restaurants typically don't insure plates because the loss is small, whereas Florida houses are often not insured due to the high probability of hurricanes.

Key Insurance Terminology

Premiums: Periodic payments for an insurance policy.

Insurance Policy:

Brand Awareness and Advertising Strategies

Brand Awareness: How present is your brand in the market? Is it recognized by the public?

Brand Image: What image do you project to your customers?

Brand Loyalty: Dedication to purchasing the same product or service repeatedly, now and in the future, from the same brand, regardless of a competitor's actions or changes in the environment.

Brand Stretching: When a company tries to launch products outside its core group. Example: Zara / Zara Home.

Announcement vs. Advertisement: An announcement is an act of announcing or giving notice, while an advertisement is a commercial solicitation designed to sell a commodity, service, or similar (marketing).

What Makes a Good Advertisement?

A good advertisement is:

• Clever
• Powerful
• Catchy
• Inspiring
• Uses