Notes, abstracts, papers, exams and problems of Economy

Political Landscape

The two political groups that dominated the assembly were:

• Girondins: Represented the interests of the bourgeoisie.
• Jacobins: Represented the laborer people and the sans-culottes.

The Roaring Twenties (1920-1929)

The year 1929 marked the end of an era of extraordinary economic prosperity in the United States known as the Roaring Twenties. This expansion resulted from increased demand during World War I and the post-war recovery.

Burgeoning Economic Growth

The expansion of the American economy was driven by a change in production dominated by technical innovation and changes in work organization, characteristic of the Second Industrial Revolution.

Consumer Revolution

A significant shift occurred in the systems of demand and supply.... Continue reading "The Roaring Twenties and the Great Depression: A Historical Analysis" »

Tax is to raise revenue (cover a range of government expenditure) (e.g. Build school, hospital, improve road)

To discourage certain activities that will cause damage to people’s health or pollution. (e.g. cigarette, cars, fuel)

To discourage the import of goods, import tax is referred to as tariff

To redistribute income from the rich to poor

Direct tax: paid directly to the government from your wages

Indirect tax: tax that is added on goods and services. Consumers pay tax by paying more for the goods or services.

Progressive tax: rich people pay more than poor people

Regressive tax: poor people pay more than rich people. This happens when the government imposes a tax at a set rate.

Proportional tax: Everyone has to pay the same percentage of income.... Continue reading "Understanding Taxation and Trade" »

Step 1: Clarifying What We Are Talking About

Globalization

Globalization is increasing economic integration among countries due to trade, migrations, and capital flows.

Trade

• Imports and exports of goods and services
• Imports and exports of licenses, patents, copyrights -> licensing, franchising market entry modes

Migrations

• Movement of people -> remittances, working visas

Capital Flows

• Inward and outward Foreign Direct Investment (FDI) (long term, owning and controlling assets) -> mergers, acquisitions, equity alliances
• Inward and outward Foreign Portfolio Investment (FPI) (short-term speculative investment)

Step 2: Identify Data Sources

Identify data sources where to find data from these variables (OECD, EUROSTAT).

Step 3: Gather the Data

Step

Cash flows from Operating Activities include which of the following as inflows

-Any cash receipt that does not meet the definition of investing, capital and related financing, or non capital financing activities

Cash flows from Investing Activities include which of the following as outflows

-Purchase of short-term investments

Cash flows from Capital and Related Financing Activities include which of the following as inflows

-Receipts from the sale of an old backhoe that had been used in general government activities

Accounting 1:

Car Expenses

Owning a car brings freedom, but it also comes with responsibilities. The costs involved with buying a car are more than just the purchase price. A young person needs to know how much they can afford to pay:

• For one-off expenses, such as: purchase price, stamp duty & transfer of registration fee (where applicable).
• For annual and ongoing expenses, including: registration, compulsory car insurance, optional car insurance, loan repayments (if applicable), fuel, parking, car maintenance, & car servicing (for periods not covered by warranty if applicable).

Car Insurance

Car insurance can cover the cost of your car if you damage it, it is stolen, or if anyone is injured. If there is an accident involving your car, you... Continue reading "Car Expenses: A Comprehensive Guide to Costs and Financing" »

Management Buyouts Explained

Q: Management Buyouts are a form of buyouts. Explain this term.

Management buyouts (MBOs) are acquisitions where the company's existing management team purchases the company. While legally similar to other acquisitions, MBOs differ because the buyers are also the company's managers. This often means a limited due diligence process, as the buyers already possess in-depth knowledge of the company. Sellers are also likely to provide minimal warranties, assuming the management team is more familiar with the company's state than they are.

Stock Issuance and Dividend Calculation

Q: Company XYZ wants to issue more Common Stock of Face Value Rs 12. Next Year the Dividend is expected to be Rs. 3 per share assuming a Dividend

Corporate External Growth Strategies

Economic Conditions

Labor shortages

Lack of market growth

Vertical Growth

Achieved by taking over a function previously provided by a supplier or distributor.

Horizontal Integration

The degree to which a firm operates in multiple geographic locations at the same point in an industry’s value chain.

Vertical Integration

The degree to which a firm operates vertically in multiple locations on an industry’s value chain, from extracting raw materials to manufacturing to retailing.

Forward Integration

Assuming a function previously provided by a distributor.

Backward Integration

Assuming a function previously provided by a supplier.

Horizontal Growth

Expansion of operations into other geographic locations and/or increasing... Continue reading "Corporate Growth & Stability Strategies" »

International vs. Domestic Marketing

International Marketing is the process of planning and executing transactions across national borders to create exchanges that satisfy individuals and organizations. It includes exports, imports, licensing, joint ventures, subsidiaries, and management contracts.

Domestic Marketing focuses on the supply and demand of goods and services within a single country. Businesses expand internationally due to limited domestic market size and growth.

Key Differences

International Marketing: Operates products, services, promotions, pricing, and distribution in multiple countries.

Domestic Marketing: Operates products, services, promotions, pricing, and distribution in a single country.

International Marketing Strategic Plan