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

The Urgent Need for Climate Action

The effects of climate change are a pressing concern for society. While much has been done to mitigate its impact, there is still much more to be done. In recent years, there has been a growing awareness of the need to take action to combat climate change. However, more action needs to be taken, and it must be taken quickly.

It is suggested that more measures be implemented to reduce carbon emissions and to increase the use of renewable energy sources. The government should also encourage people to make lifestyle changes to reduce their carbon footprint. It is hoped that, in the future, the effects of climate change can be minimized.

If more action were taken, the future would be brighter. However, it is not... Continue reading "The Urgent Need for Climate Action and the Impact of Technology on Jobs" »

Business Financing (Microcredits) Causes and Effects

Introduction

The goal of the present study is to analyze microcredits, their origin and their development. This report shows two dimensions. Firstly, the origin of microcredits and secondly, the effects in developed countries and in developing countries.

Origin of Microcredits

Microcredits are a kind of loan addressed to a part of the society who did not have enough means to pay back a loan with a higher amount, a fixed employment or a verifiable credit history. In addition, it has also served to finance entrepreneurs. The roots of this type of loan were originated in the 60’s by Muhamad Yunnus. The main cause of this creation was the financing of this type of people to acquire their houses,... Continue reading "Microcredits and China's Economic Expansion" »

Comparative Advantage and Trade

Absolute vs. Comparative Advantage

Absolute advantage occurs when a country can produce more of a good with the same resources or produce the same good with fewer resources (higher efficiency). Comparative advantage exists when a country can produce a good at a lower opportunity cost than another country.

Illustrative Example

1. Before Specialization: Assume two countries, A and B, each allocating half their resources to produce wheat (W) and rice (R). Country A produces 50W and 40R, while Country B produces 100W and 50R.
2. After Specialization: Based on opportunity costs, Country A specializes in rice (80R), while Country B specializes in wheat (200W).
3. Trade: At a market price of 1W = 0.6R, Country B can export 100W and

Management Accounting

Management accounting measures, analyzes, and reports financial and non-financial information that helps managers make decisions to fulfill organizational goals. Management accounting need not be GAAP compliant. Managers use management accounting information to develop, communicate, and implement strategies, coordinate product design, production, and marketing decisions, and evaluate a company's performance. Behavioral and technical considerations recognize that management is primarily a human activity that should focus on encouraging individuals to do their jobs better.

Financial Accounting

Financial accounting focuses on reporting to external parties such as investors, government agencies, and banks. It measures and records

AUSTERITY THE ANSWER FOR SPAIN?

1.Edward Hugh

-Austerity Alone is not enough, but is necessary                                                                        There’s A HIGH DEBT                                                                                                     Unemployment Is rising and young people are leaving the country. This can put in danger the Public system

Spanish Govt. Has to recover confidence and regain competitiveness. To do that, needs Collaboration from EU countries

2. David Lizoain

-Austerity measures and Increasing taxes are a disaster in a short-

Foreign Direct Investment

• Flows of FDI

The amount of FDI undertaken over a given time period.

From this year to this year, how much FDI flowed.

• Outflows → flows of FDI OUT of a country.

How much Mexico invested in other countries.

• Inflows → flows of FDI INTO a country.

How much other countries invested in Mexico.

• Stocks of FDI

The total accumulated value of foreign-owned assets at a given time.

For a very specific given time.

The ones who received more FDI are developed nations because they have more open markets.

U.S is a target for FDI inflows:

• Large and wealthy domestic market
• Dynamic and stable economy
• Favorable political environment and openness to FDI

FDI:

US is the largest source since WWII.

US, UK, France, Germany, Japan & Netherlands account... Continue reading "Foreign Direct Investment: Flows, Stocks, and Forms" »

What are the objectives of auditing

AAS-1 describes the basic principles, which govern the auditor's professional responsibilities and which should be complied with whenever an audit is carried out. These are:-

1. Integrity, objectivity and independence:

The auditor should be straightforward, honest and sincere in his approach to his professional work. He must be fair and must not allow prejudice or bias to override his objectivity.

Confidentiality:

The auditor should respect the confidentiality of information acquired in the course of his work and should not disclose any such information to a third party without specific authority or unless there is a legal or professional duty to disclose.

Skill and competence:

The audit should be performed and... Continue reading "Auditing Objectives and Errors" »

Impact of Entrepreneurial Firms in Today's Economy

4.1 Global Entrepreneurship Monitor (GEM) by Babson College

Provides an annual assessment of the entrepreneurial environment of 42 countries.

Entrepreneurs lead to growth by:

• Entering and expanding existing markets
• Creating entirely new markets by offering innovative products
• Increasing diversity and fostering minority participation in the economy

4.2 The Most Impacting: The Gazelles (High Tech Growth Firm)

A “Gazelle” (high growth companies) is a business establishment with at least 20% sales growth in each year for five years, starting with a base of at least $100,000 in annual sales.

• Gazelles as leaders in innovation
• Produce twice as many product innovations per employee as do larger firms
• Have

If any triple of integers (x, y, z) satisfy (3.2), then so do any of (+x, ±y, +z); thus, to show the theorem, it suffices to show that there are 110 positive integer solutions to (3.2). The proof is accomplished by showing that if some solution (r, y, z) to (3.2) exists, then from that solution one can create another "smaller" solution (a', y', 2), where "smaller" means that z' < z. Since the positive integers are well-ordered, this process cannot continue forever, and so one must abandon the original assumption that some solution exists.

Modulo 4, x and y cannot both be odd.

Let x and y be even, say x = 2k, y = 2E; then 16 divides z², and so 4 divides z, say z = 4m.

Then (2k)4 + (tn)2, and division by 16 yields k4 + = in2, a smaller solution.... Continue reading "Proof of Theorem and Solutions to Equation (3.2)" »

Causes and Effects of Monopoly Power

Introduction

The goal of the present study is to analyze the causes and effects of the monopoly power of companies.

Causes of Monopoly Power

• Incentives for companies to have monopoly power:
• High levels of benefit leading to investment in Research and Development
• Economies of Scale
• Efficient production and success

Effects of Monopoly Power

• Less competition and higher prices
• Allocative inefficiency and diseconomies of scale
• Lower prices to suppliers

Conclusion

Monopolies generally lead to higher prices and are more inefficient. However, may be the best outcome for some industries with substantial economies of scale. This investigation has a number of limitations to be considered in evaluating its findings.

Problems and