Notes, abstracts, papers, exams and problems of Economy

Market Type Comparisons

• Niche market is the smallest type of market. (Small)
• Luxury market is more expensive than other markets. (Expensive)
• Mass market is the most popular type of market. (Popular)
• Mass market is larger than niche market. (Large)
• Luxury market is the most expensive type of market. (Expensive)
• Home market is smaller than export market. (Small)
• Home market is the most boring market in Chile. (Boring)
• Technology market is the most modern market nowadays. (Modern)

Brand and Product Comparisons

• Dominos makes the best hot dogs in Chile. (Good)
• Apple is more interesting than Samsung. (Interesting)
• Volvo is the safest car. (Safe)
• Rolex is fancier than Casio. (Fancy)
• Mc Cola is worse than Coke. (Bad)
• Microsoft has the most stable computer. (Stable)

**PART B**

1. Understanding Price Elasticity of Demand

Price elasticity of demand measures the responsiveness of demand to changes in price. It indicates how much demand will change in response to a given price change.

Elasticity of Smartco's Fruit Products

Smartco operates in a competitive industry where price elasticity is high. This means that even small changes in price can significantly impact demand for their fruit products.

Predicting Smartco's Market Activities

The high price elasticity of Smartco's products influences their market activities in several ways:

• Pricing: Smartco must maintain competitive prices to attract and retain customers.
• Promotions: Promotions can reduce price elasticity by increasing product awareness and loyalty.

**PART

Data-driven and Decision-Making

Definition Data-Driven: Involves rational quantitative assessment, and information arise through slow, conscious, sequential associations.

Definition Data-Making: Refers to affectively charged judgments that arise through rapid, non-conscious, holistic associations

Big data and the 5Vs Definition:

Big Data is a term that is applied to datasets whose size or type is way complex than traditional data sets and is beyond the ability of traditional relational databases to capture, manage, and process with efficiency. Examples: Google trends Uses big data generated by our Google searches

The 5Vs: Volume, Variety, Velocity, Veracity, Value Link with DATA: individual prices, weights. Link with Information: Time Table, Merit... Continue reading "Purpose and content of" »

Ch 31: Balance of Payments

The balance of payments is a systematic record of all economic transactions between residents and non-residents of a country over a period. It is categorized into:

• Goods and Services (Trade Balance): This is the most significant component.

NX = NCO + Reserve Asset

Vehicle currency: $, Yen, Euro, Yuan

Real Exchange Rate: P / (P*e), where an increase in the Real Interest Rate (RIR) leads to a decrease in Net Capital Outflow (NCO), and a decrease in RIR leads to an increase in Net Exports (NX).

Purchasing Power Parity (PPP): This theory suggests that the nominal exchange rate is determined by the equation RER = P / (P*e) = 1.

Problem: The existence of non-tradable goods.

Arbitrage: Risk-free investment that leads to the Law

ch 1

accounting equation (ch 1):

the balance sheet shows the relationship between assets, liabilities, & stockholder’s equity at a particular date. In equation form, assets = liabilities + stockholder’s equity. This is referred to as the basic accounting equation.

financial statements (ch 1) format/content (which accounts belong on each financial statement):

4 types of financial statements:

income statement:

summarizes all revenue & expenses for a period (month, quarter, or year). If revenues exceed expenses, the result is a net income. If expenses exceed revenue, the result is a net loss.

• revenues
• service revenue
• expenses
• salaries & wages expense
• supplies expense
• rent expense
• insurance expense
• interest expense
• depreciation expense
• total expenses
• net

Launch

Start an action in order to introduce something (e.g. a new product).

Mailshot

Piece of advertising material sent to potential customers by post.

Mass Media

The main means of mass communication (newspapers, TV and radio).

Plug

Favourable publicity in a media for a commercial product (e.g. a book).

Poster

Large sheet of paper used in advertising.

Prime Time

Hours on radio and TV with the largest audience, usually in the evening.

Promote

Use advertising and publicity to try to increase sales of a product.

Roadside Signs

Large panels along roads and motorways used for outdoor advertising.

Slogan

Phrase used to advertise a product, or to identify a company or organization.

Slot

Specific time in a broadcasting schedule allotted for a commercial.

Soundbite

Short... Continue reading "Advertising Terminology and Definitions" »

Social Media

has transformed the ways in which people share and consume information. Social media has offered a host of new platforms to disseminate content, build relationships, foster engagement & better understand the needs of target audiences.

4 Phases Readiness

A sound crisis management strategy starts with preparation long before the onset of an actual crisis. While it’s impossible to plan for every future scenario, examine your company, facilities, people, products & environment to assess areas of significant risk & identify the potential threats that are both most likely to happen and cause harm. When a crisis breaks, things are going to accelerate & need a solid response plan in advance in order for your organisation... Continue reading "Effective Crisis Management Strategies" »

Cost Leadership

Requires a set of interrelated tactics, including:

• Aggressive construction of efficient-scale facilities
• Pursuit of cost reductions from experience
• Tight cost and overhead control
• Avoidance of marginal customer accounts
• Cost minimization in all activities in the value chain, such as R&D, service, sales force, and advertising
• Parity in differentiation with competitors

PITFALLS: lack of parity in differentiation, reduced flexibility, obsolescence

PRIMARY: EFFECTIVE

SECONDARY: todo lo que reduzca coste.

Transaction Processing Systems (TPS)

• Basic business systems that serve the organization's operational level
• Input: transactions (invoice, order, payroll), events
• Processing: Sorting, listing, merging, updating
• Output: detailed reports, lists,

The Millennium Development Goals (MDGs)

The Millennium Development Goals (MDGs) are the eight international development goals or targets that were established following the Millennium Summit of the United Nations in 2000 for reducing global poverty. All 189 United Nations member states at the time (there are 193 currently), and at least 23 international organizations, committed to helping achieve the following Millennium Development Goals by 2015. Each goal has specific targets, and dates for achieving the targets.

The MDGs ranged from halving extreme poverty rates to halting the spread of HIV/AIDS and providing universal primary education. Nowadays, the UN is working with governments, civil society and other partners to build on the momentum... Continue reading "The Millennium Development Goals: A Global Effort to Reduce Poverty" »