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

The initial talks on reconstructing a postwar international monetary system started between the United States and United Kingdom as early as 1941. The lead negotiators were Harry Dexter White for the USA and John Maynard Keynes for the British. Given the US economic and political dominance at the end of the war, it is not surprising that the eventual system reflected more the US proposals. The system that emerged was ratified at an international monetary conference held at Bretton Woods, New Hampshire, attended by some 44 countries although some commentators dubbed the conference as a meeting of 1.5 nations (the USA and the UK!).

The Bretton Woods Agreement created three institutions. The World Bank dealt with structural and long-term development

Chapter 8: Individual Taxation

The Marriage Penalty occurs when a couple's tax liability is greater when filing married jointly than if both had filed under single status.

The Kiddie Tax applies to a child if:

1. They are ≤18 years old at year-end,
2. They are 18 at year-end but earned income ≤ half of their support, or
3. They are 18 ≤ age ≤ 24, a full-time student, and earned income ≤ half of their support.

If the Kiddie Tax applies, net unearned income (NUI) can be taxed at their parent's marginal tax rate. NUI is income in excess of $2,100.

Alternative Minimum Tax (AMT) is often caused by high capital gains, multiple children, and high state taxes. After multiplying the AMT base by the AMT rate, subtract the regular tax liability from this amount.... Continue reading "Tax Rules for Individuals and Businesses: Key Concepts" »

Outsourcing

Outsourcing is a business practice in which a company hires another company or an individual to perform tasks, handle operations, or provide services that were either usually executed or previously done by the company's own employees.

Marketing Mix (MX)

Essential to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4 Ps make up a typical marketing mix: Price, Product, Promotion, and Place, including packaging, positioning, people, and even politics.

Raw Materials

Raw materials are materials or substances used in primary production or manufacturing.

Trade Union

A trade union is an organization whose membership consists of workers and union leaders, united to protect and promote their... Continue reading "Business Terminology Glossary" »

Understanding Governmental Proprietary Funds and Business Activities

Good Supplier Selection

To value and compare:

• Qualities
• Prices
• Discounts
• Terms
• Cost of Transportation
• Packaging
• Payment
• Customer Service
• Long-term Relationship Potential

Supplier Comparison Table

Prepare a comparative table showing all offers:

• Prices
• Quality
• Payment Terms
• Delivery
• Discounts
• Etc.

Importance of Transportation

Transportation is important because it involves the transfer of goods. Consider freight costs (noli), freight services, and insurance, especially for expensive products, to ensure their safety and potentially save costs.

Managing Long Delivery Times

Regarding delivery: If payment is late, the seller typically has the right to charge interest. Payment is normally due fifteen days after delivery of the product, allowing the buyer time to verify... Continue reading "Supplier Selection and Evaluation" »

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

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" »