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

The 2008 Economic Crisis and Unemployment

In 2008, a significant economic crisis began, impacting the entire world, especially Europe. The most noticeable consequence has been high unemployment.

Understanding the Unemployment Rate

The unemployment rate is the percentage of the total labor force that is unemployed but actively seeking employment and willing to work.

Unemployment Trends in the European Union (2008-2014)

In the European Union, between the start of the crisis in 2008 and 2013, the unemployment level rose to a rate of 10.9%. However, since 2013, it has begun to decrease, reaching 9.9% by the end of 2014, largely due to the slow recovery of the economy.

European Countries with Varying Unemployment Rates

Currently, countries with lower unemployment... Continue reading "Unemployment in Europe: Crisis, Youth, Long-Term, and Brain Drain" »

·MONOPOLISTIC ADVANTAGE:

Suggests that FDI is preferred by MNEs because it provides the firm with control over resources and Capabilities in the foreign market, and a degree of monopoly.

Economic and Monetary Union

The Economic and Monetary Union (EMU) is an instrument to further the objectives of the European Union and improve the lives of citizens in the Member States. The operations and management of the EMU are designed to support sustainable economic growth and high employment through appropriate economic and monetary policy-making. It involves four main economic activities:

• Implementing an effective monetary policy for the euro area
• Coordinating economic and fiscal policies
• Ensuring the smooth operation of the single market
• Supervising and monitoring financial institutions

Monetary Policy

Monetary policy involves influencing interest rates and exchange rates to benefit a country's economy. It is managed through the European... Continue reading "Economic and Monetary Union: Understanding EU Financial Stability" »

Dimensions of Corporate Social Responsibility (CSR)

ETNOR Model

The ETNOR Model establishes the dimensions of CSR based on the type of responsibility that the action generates and the social expectations generated by each of them:

1. Philanthropic Responsibility

• Resources provided by companies with social, educational, recreational, and cultural purposes
• Contribute to the community in which they are located
• Desired by some stakeholders of the company

2. Ethical Responsibility

• Obligation to do what is right even if companies are not required by law
• Expected by some stakeholders

3. Legal Responsibility

• Obey laws, adhere to regulations
• Required by some stakeholders

4. Economic Responsibility

• Be profitable
• Maximize return on sales
• Minimize costs
• Make appropriate

Advertisement

Item of publicity to promote a product or service in newspapers, magazines, on TV, etc.

Advertising Agency

Marketing services firm that assists companies in planning advertisements.

AIDA

Attention, Interest, Desire, Action - the aim of all advertising.

Benefit

Advantage of a product or service.

Billboard

Signboard or wooden structure used to display advertising posters.

Broadsheet

Newspaper printed in a large format.

Campaign

Organised course or plan of action.

Circulation

Average number of copies of newspapers or magazines sold over a period of time.

Classified Ads

Small advertisement in newspapers or magazines divided into categories.

Commercial

Advertisement on radio or television.

Coupon

Part of a printed advertisement to be used to order goods... Continue reading "Advertising Glossary: Key Terms and Definitions" »

The EU Single Market: Driving Economic Growth and Prosperity

The European Commission estimates that EU GDP is 1.8% higher thanks to the Internal Market. Additionally, employment is 1.46% higher, which means that around 2.5 million extra jobs have been created.

Economic Impact and Regional Cohesion

Over the last ten years, the Internal Market has increased the Union’s GDP by €877 billion. These figures are likely an underestimate of the full impact of the Internal Market. The combination of the Internal Market and cohesion policies has ensured that these benefits have not missed the poorest regions of the Community, as many feared they would. In fact, the opposite has happened, as many of these regions have actually enjoyed the highest growth

Depreciation

Decline in value of long-term tangible assets such as buildings, furniture, or equipment. It is systematically recognized by accountants as depreciation expense over the useful lives of the affected assets.

Accrued Expense

Expenses that are recognized before cash is paid. An example is accrued salaries expense.

Book Value

Historical (original) cost of an asset minus accumulated depreciation to date.

Callable Bond

Bonds that the issuer, at its option, may pay off prior to maturity.

Amortization

(1) Systematic and periodic allocation of the costs of intangible assets to expense over their useful lives; (2) periodically transferring the discount on a note or a bond to interest expense.

Cash Equivalent

Investments securities that are for short-... Continue reading "Understanding Financial Accounting: Key Terms and Definitions" »

Wealth

An abundance of valuable possessions or money.

Plentiful supplies of a particular resource.

HDI ranking:

The rank a country has in the HDI index (Human Development Index that measures health, education, and standard of living.)

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.

Infant mortality rate:

Number of babies who may die under the age of 1 per 1000 live births.

GNI per capita:

Gross national income (the total income for a country computed by taking the value of goods, services, and the money received from abroad) divided by the population of the country.

Life expectancy:

Number of... Continue reading "Understanding Wealth and Development Indicators" »

Step 1 Review the Marketing Plan

1. What product/service is being marketed?
2. What is known about the market where the brand will compete?
3. What are the brand's marketing objectives?
4. How is the marketing communication expected to contribute to the marketing objectives?

Step 2, Selecting a Target Group

1. What are the relevant target buyer groups?
- Select a primary target buyer group: Existing customers (repeat purchase) / Non-customer (trial)
- Potential target audiences in terms of brand attitudes: BL (Brand loyal), FBS (First brand switchers), OBL (Other brand loyal), OBS (Other brand switchers), NCU (Non-customers)
- Communication strategies will differ significantly, depending upon the target group.
+ If the target is primarily BL or FBS,... Continue reading "Developing a Marketing Plan for Brand Success" »