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

This document outlines several fundamental business strategy frameworks crucial for analyzing market dynamics, competitive landscapes, and internal capabilities.

PESTEL Analysis: External Environmental Factors

The PESTEL analysis identifies key environmental variables that may influence a business, either positively or negatively. Choosing critical dimensions is essential for effective analysis.

• Political: Government agencies, pressure groups, lobbies, etc.
• Economic: Income, prices, inflation, debt, credit, etc.
• Sociocultural: Population, birth rate, lifestyle, consumption habits, etc.
• Technological: Innovation, technological changes.
• Ecological: Raw materials, sustainability, recycling, etc.
• Legal: Regulations related to competition, consumers, and

Key Business Acronyms

• CCP: Chinese Communist Party
• OCA: Online Choice Architecture
• EBIT: Earnings Before Interest and Taxes
• CRS: Corporate Social Responsibility
• GPS: Global Positioning System
• COGS: Cost of Goods Sold

Scott Galloway on the Modern Business Landscape

Professor Scott Galloway highlights oil as the most important commodity. However, in the current era, he argues that social media platforms like TikTok are the real deal, although he believes TikTok should be banned due to its links with the CCP, which he considers a tool of espionage.

Innovation Strategies of Supermajors

Supermajors, or large oil and gas companies, are employing innovative strategies such as:

• Emotional Resonance: Engaging users through comments and attractive content.
• Offloading

Business Functions and Logistics

• Core Functions: Administration, Human Resources (HR), Technology, Procurement
• Logistics & Operations: Inbound Logistics, Operations, Sales, Service, Outbound Logistics

Key Information Systems

Enterprise Resource Planning (ERP)

• Integrated system covering: Sales, Production, Finance, HR
• Characteristics: Complex, Costly

Supply Chain Management (SCM)

• Manages: Supply, Production, Distribution
• Covers: Inbound Logistics, Manufacturing, Outbound Logistics
• Focus: Inventory Cost reduction
• Related Concepts: Key Performance Indicators (KPI) for efficiency, Just-In-Time (JIT)

Customer Relationship Management (CRM)

• Types: Operational, Analytical, Collaborative
• Process: Capture customer data, Analysis, Change business processes
• Goals:

Business Entity Fundamentals

• Entities:
  • Natural person (1 owner)
  • Moral person (+2 owners)
• Source of Capital:
  • Private (individuals)
  • Public (state)
  • Mixed (individuals and state)
  • Domestic (Mexicans/national)
  • Foreign
• Act Developed:
  • Trade
  • Manufacturer
  • Service
• Countries Operate:
  • National
  • Multinational
• Purpose:
  • For-profit
  • Non-profit

Financial Reporting Standards (IFRS)

All entities keep accounting records as measured following Financial Reporting Standards (IFRS).

Accounting Definition

Accounting: Methodical and systematic record of the daily operations of an economic entity.

IFRS Ethics Principles

• Integrity: Honest
• Objectivity: No conflict of interests
• Competition: Update knowledge
• Confidentiality
• Professionalism: Comply with laws

Accounting Information Systems

System: Set of elements... Continue reading "Key Business and Accounting Concepts" »

International Trade

• Finished Merchandise - Certificate of Manufacture
• Issue - Letter of Credit to Finance
• Arrange Shipment - Bill of Landing
• Warehouse - Customs
• The Flow of Goods - Applied to Imports
• Freight or Cargo - Inspection Shows
• Required Standards - Check the Contents
• The Supplier Provides - The Payment
• The Seller Meets - To Arrange Transport
• The Merchandise at All Times - Most Trade
• Incoterms - Responsible for the Goods
• The Goods to Port - A Quoted Price
• Transport Charges

Shipping

• Cargo Complete
• Consignee
• Contact
• Container Terminal
• Free of Damage
• Free of Charge
• Freight Container
• Guarantee
• Load
• Loss
• Port of Discharge
• Port of Origin
• Quote
• Rates
• Reliable
• Shipper
• Unload
• Vessel
• Volume
• Worldwide

Import and Export

• Advantage
• Buyer
• Ensure
• Export
• Follow-up
• Foreign
• Import
• Investment
• Manage

The Tourist Demand

Evolution of Tourist Demand

1948: The U.N.'s Universal Declaration of Human Rights declared travel as a human right. This has led to the concept of Responsible Tourism we see today.

History: Tourist demand has consistently increased over time. Leiper's Outbound Region model highlights that tourist demand is the outcome of activities and decisions made by individuals in the generating region.

Studies on the Evolution of Tourist Demand

UN (1948): Declared everyone has the right to "relief and leisure, including (...) some periodic paid holidays".

UNWTO (1980): The Declaration of Manila stated the ultimate aim of tourism is "the improvement of the quality of life and the creation of better life standards for all nations." This marked... Continue reading "Evolution & Determinants of Tourist Demand: A Comprehensive Guide" »

Trade

Definition and Types

Trade is the buying and selling of products and services to satisfy the needs of the population. There are two main types of trade:

• Domestic trade
• International trade

Elements of Trade

• Sellers: Individuals or companies that have goods or services they want to sell.
• Buyers: Individuals or companies that buy products.
• Goods: Products that are bought and sold for money.
• Markets: Places where commercial transactions take place (e.g., physical markets, farmers' markets, online marketplaces).

Characteristics of Trade Today

• Large quantities of goods are in constant movement between different regions.
• There is a worldwide network of trading partners.
• Trade, along with transportation, provides jobs for people.
• It is dominated by an ever-

Sources of Entrepreneurial Dilemmas

Ethical dilemmas are complex situations involving apparent conflicts between moral imperatives, where adhering to one may transgress another.

Internal and External Pressures

These pressures can create internal conflicts for entrepreneurs.

Shifting Societal Values

Changes in societal values, mores, and norms can also contribute to ethical dilemmas.

Ethical Code of Conduct

An ethical code of conduct is a statement of ethical practices or guidelines to which an enterprise adheres.

Organizational Barriers to Ethical Behavior

1. Systems: Resistance to established systems can lead to individuals creating their own methods, potentially bypassing ethical guidelines.
2. Structures: Dissatisfaction with the company structure can lead

Y=C+I+G

Y=Co +\- @(Y-To) + Io + Go and/or +Xn

Y=Co+\- 1/@ - @To+Io+Go and/or + Xn 

Y - 1/@ = Co - @To +Io + Go and/or + Xn

Y(1-@) = Co - @To + Io + Go and/or + Xn

Y=Co - @To + Io + Go and/or + Xn

                 1 - @

C= Co + 1/@*d --- taxes

  = Co + @ (y-Io) --- no taxes

yd= y- To

K = 1/1-mpc

k= 1/mps

DI= c+s

APC = C/DI

APS = S/DI

MPC = 1 / 1-@

MPS = 1 / @

Multiplier = 1 / 1-mpc or 1/mps

xn = x-m

Ca = C +/- mpc * tx

Sa = S +/- mps * tx

Aggregate Demand - Total value of real aggregate output that both sectors of the economy are willing to purchase at some AVG price.

AD = L(p)

Investment rates, future business expectations, Technology, Degree of excess capacity, Business Taxes

Aggreagate Supply- Total value of real Aggregate output that will be... Continue reading "Aggregate demand and aggregate supply cheat sheet" »

Key Factors Influencing Tourism Participation

Determinants explain why some countries have a high propensity to participate in tourism, whereas other countries show a lower one. Determinants can be classified into the following categories:

• Economic: Disposable income, GNP per capita, private consumption, cost of living, tourism prices, exchange rate differentials, promotional expenditure, and prices of other destinations.
• Sociological: Motivations, travel preferences, perceptions of destinations, paid vacations, past experience, and images of destinations.
• Demographic: Life span, physical capacity, health and wellness, etc.
• Political: Political and social environment, barriers and obstacles, restrictions, rules and laws, war, terrorism, accessibility,