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

Market Research: Primary and Secondary

What is market research?

Market research is the process of gathering, analyzing, and producing data relevant to the marketing process, such as the size of the market, key market trends, or characteristics of customers. Market research can identify the reasons for buying a product and customers’ wants. It provides a manager with information for effective decision-making. The objective of market research is to meet consumers’ needs more effectively.

Primary and Secondary Market Research

Primary market research gathers data for the first time for a specific purpose and is conducted face to face with customers. It can be tailored precisely to your own needs but can be expensive and time-consuming. Mistakes... Continue reading "Market Research: Primary, Secondary & Product Life Cycle" »

US Sugar Quotas: Impact on World Prices?

The United States uses quotas to limit sugar imports and protect its domestic producers. Since the US is a large consumer, reducing its imports decreases demand on the world market. This likely leads to a lower world price for sugar compared to a free trade scenario. Conversely, the domestic price within the US increases due to the restricted supply.

The 1933 US "Buy American" Act: Purpose and Impact?

The federal "Buy American" Act was passed in the United States in 1933, primarily during the Great Depression.

• Purpose: To stimulate the US economy by requiring government agencies to prioritize purchasing domestically produced goods.
• Impact:
  • Potential Benefits: Increased demand for American products, potentially

Types of Banks

Executive Summary

When you think of a bank, the first thing that comes to mind might be the place that holds your checking or savings account. But there are several different types of banks, all serving different types of needs. It is possible that many of the banks are not known, but each bank plays a very important role in the day to day. For example, Banking system is a group or network institutions that are responsible for operating a payment system, loans, deposits and helping with investments.

Introduction:

This report will look at:

• Commercial Banks
• Credit Unions
• Investment Banks
• Online Banks
• Offshore Banks

Findings:

1. At a Commercial Bank you can open a chequing or saving account apply for a car or home loan, transfer money or pay... Continue reading "Understanding the Different Types of Banks and Their Roles" »

PAYMENT SERVICES DIRECTIVE II

PSD1: 2007

This legislation provides the legal foundation for an EU single market for payments, to establish safer and more innovative payment services across the EU. It offered more competition between payment services and more choice for consumers. Approved by the EU in 2015 and European countries now have 2 years to put them into national laws.

Secure e-payments and expand the financial services ecosystem, covers most of the payment service providers, demands strong authentication, opens bank data to 3^rd parties, opens the value chain for new players: various roles can be ASPSP, PISP...

PSP requirements: Strong customer authentication: username, something you have, something you are.

Responsible for finding evidence... Continue reading "Directiva de Servicios de Pago II" »

Fiscal Policy

Stimulus

• Purchasing more goods and services (G + N + S)
• Lowering taxes (individual income tax cut, corporate tax cut)
• Increasing income transfers

Restraint

• Decreased government spending (AD = FR = induced decrease)
• Increased taxes
• Reduced income transfers

Classical Economics

1. Supply creates its own demand
2. Excess income should be matched by an equal amount of investment by businesses
3. Interest rates, wages, and prices should be flexible
4. The market is always clear because prices would adjust through the interactions of supply and demand

Keynesian Economics

1. At macroeconomic equilibrium, the economy would experience neither full employment nor price stability
2. Even if the market's macroeconomic equilibrium were perfectly positioned, it would not last
3. Macroeconomic

Neoliberalism can be contemplated from three different points of view.

Neoliberalism as an Ideology

First, it is an ideology. Here, the student must summarize the main ideological points and compare them with the tenets of Keynesianism to understand the economic and political changes we are living today.

Neoliberalism as a Mode of Governance

Second, it is a mode of governance, that is, it is a conception about how the role of government should be. In a few words, governments have to imitate the principles and values of free markets. The most significant consequence is that governmental technologies taken from the world of business and trade are replacing the pursuit of some ideal of the ‘public good’ which characterized the Welfare State.

Neoliberalism

Different Types of Businesses

Classification by Level of Activity

Primary activity: It takes all the natural resources and makes them more useful to consumers (e.g., timber).

Secondary activity: It takes the materials provided by primary industry and processes them in order to satisfy society’s needs (e.g., process minerals). However, there are companies that are supplied by other companies from the same sector, such as assembly-line companies. If a product’s demand decreased, it would cause a domino effect on other product’s demand (e.g., construction).

Tertiary activity: It provides all the services that industry and consumers demand, with the aim to satisfy directly consumer’s needs.

Classification by Size

Turnover, capital employed, number... Continue reading "Understanding Different Types of Businesses" »

Entry Modes:

Exporting: Common first step for many manufacturing firms. Later, firms may switch to another mode.

Advantages:

• Avoids the costs of establishing local manufacturing operations
• Learning

Turnkey projects: The contractor handles every detail of the project for a foreign client, including the training of operating personnel.

Advantages:

• A way of earning economic returns from the know-how required to assemble and run a technologically complex process
• Less risky compared to FDI

Disadvantages:

• No long-term interest in the foreign country
• If the firm's process technology is a source of competitive advantage, then selling this technology through a turnkey project is also selling competitive advantage to potential and/or actual competitors

Licensing:

Limitations of Quantitative Easing and Nonconventional Monetary Policy

Zero Lower Bound and Deflation

While quantitative easing (QE) and other nonconventional policies can be employed when short-term interest rates reach the zero lower bound, they are not a cure-all. When the economy faces deflationary conditions, designing effective policies becomes challenging due to the increased uncertainty surrounding their outcomes. Additionally, nonconventional policies like QE are more complex to implement, making it harder to effectively stimulate the economy.

Reserve Demand and Federal Funds Rate

If the actual demand for reserves exceeds the estimated demand, the actual reserve demand curve will shift to the right. If the gap is significant, the demand... Continue reading "Understanding the Limitations of Quantitative Easing and Nonconventional Monetary Policy" »