Notes, abstracts, papers, exams and problems of Economy

Spain's Competitive Advantages for Startups

Talent, Tolerance, and Technology

Spain offers numerous public and private resources for new businesses. Key advantages include:

• The 3 T's: Talent, Tolerance, and Technology: Spain boasts innovative and advanced industries, fostering startup growth. Its open and tolerant culture welcomes diverse nationalities, creating a vibrant environment. Furthermore, Spain ranks among the top five global developers, demonstrating a rich talent pool.
• Public Support: Government programs actively attract foreign entrepreneurs. Initiatives like "Rising Startup Spain" offer incubation programs, workspaces, visa assistance, and financial support for initial expenses.
• Market Access: While Spain's market may be smaller,

SWOT Analysis Example: Direct Distribution

This example is based on an imaginary business-to-business manufacturing company that historically relied on distributors. The company is considering creating its own distribution company to directly reach end customers in sectors not currently covered by its distributors. This SWOT analysis examines that opportunity.

Subject of Analysis

Creation of a direct distribution company to access underserved end-customer segments.

Strengths

• Control and direction over final customer sales
• High product quality and reliability
• Superior product performance compared to competitors
• Excellent product lifetime and durability
• Idle manufacturing capacity
• Some employees have experience with end customers
• Existing customer list

Centrally Planned Economy

This system, inspired by Marxist theory, was born in the Soviet Union after World War I and thereafter expanded into Eastern Europe, eventually sinking in the late twentieth century. In this system, the only relevant operator is the public sector. Its main objective is to achieve an equal distribution of income. The management of economic activity is conducted through a centralized planning body that provides a series of multi-year economic plans.

Factors associated with its fall:

• Errors of forecast. In the absence of real economic signals, planners lacked reliable information on the progress of the economy; thus, they did not always correctly estimate resource allocations.
• Lack of incentives. With prices and wages set

What is a Service?

A service is an act of serving others. It requires a relationship between the person or company providing the service and its users. Services can be classified by who provides them and their purpose.

Public Services

Public services are those whose provision is guaranteed by the state.

Private Services

Private services are offered specifically for financial gain.

Service Purposes

Services exist for various purposes, including:

• Commerce
• Financial services
• Transportation
• Tourism-related activities
• Information and communications
• Business support
• State administration
• Social and personal needs

Understanding Trade

Trade refers to the set of activities aimed at exchanging goods and services.

Factors Influencing Trade

• Development of Transport and Infrastructure:

Production and Economic Structures

Economic Phenomena: A set of phenomena related to production. This encompasses the sum of the output of all production units, creating value added throughout the economy. It's crucial for understanding the overall economic structure and short-term cycles.

Business Management: One type of business management focuses on formulating and implementing strategies. This involves making contingent decisions and considering various factors, such as access to financial resources, fixed capital, and renewal investment. Financial returns and recovery time are key considerations.

Productivity and Efficiency: Output per unit of employee input is a vital metric. Intensive operations management is essential for achieving... Continue reading "Business Management and Strategic Decision-Making" »

Core Marketing Principles Explained

What Is Marketing?

Marketing is a dynamic discipline encompassing technical and political, objective or subjective strategies. Its success depends on the activity of entering the market. Its use became widespread, evolving into an essential term for business. While synonymous with the Spanish terms "mercadotecnia" and "mercadeo," "marketing" was adopted among Spanish speakers. It affects not only business operations but also the entire company structure, which has adapted to meet the challenges of this strategy. Marketing is a process by which companies generate profits by offering goods and services in appropriate markets at suitable and profitable prices, using appropriate promotion and precise advertising... Continue reading "Core Marketing Principles: Definition, Evolution & Research" »

Goods and Services

Who Produces Goods and Services?

Individuals with specific skills tend to be more productive. Specialization is key to efficient production and acquisition of goods and services.

Why Specialization?

The division of labor and exchange promotes productivity.

Factors of Production

• Earth
• Labor
• Capital

These factors combine to generate natural resources (raw materials), which are then transformed into finished products. The ultimate goal of production is profit.

Capital

Capital encompasses machinery, manufactured goods, large-scale plants, and inventories of finished and unfinished materials (excluding human resources).

Natural Capital

Natural resources are considered natural capital when they become a source of profit.

Human Capital

Human capital... Continue reading "Production, Economic Factors, and Agents" »

Tourism: Advantages and Disadvantages

Tourism involves tourists traveling outside their usual environment to experience other cultures for leisure, business, or other purposes.

Advantages of Tourism

• Family Integration: Tourism fosters dialogue and unity within families.
• Natural Resource Utilization: Tourism showcases natural resources, creating new attractions.
• Tourist Security: Enhanced security measures increase tourist confidence.
• Conservation: Preservation of historical and tourist sites protects cultural heritage.
• Job Creation: Tourism projects generate employment opportunities.

Disadvantages of Tourism

• Cultural Loss: Communities may experience cultural erosion due to changing environments.
• Environmental Pollution: Poor management can lead to pollution,

What is Economic Activity?

Economic activity is any process through which we obtain products and services that meet human needs. It encompasses three stages:

• Production
• Distribution
• Consumption

Economic Sectors

The economy is divided into three main sectors:

• Primary Sector: This sector involves obtaining raw materials from nature (e.g., farming, mining, fishing).
• Secondary Sector: This sector transforms raw materials into finished products (e.g., manufacturing, construction).
• Tertiary Sector: This sector provides services to society (e.g., healthcare, education, finance).

Gross Domestic Product (GDP) and GDP Per Capita

GDP is the total value of goods and services produced in a territory within a year.

GDP per capita is calculated by dividing the GDP of... Continue reading "Understanding Economic Activity and Systems" »

Factors Influencing Price Determination

Base or list price: Refers to the unit price of the product at its point of production or resale. It does not reflect discounts, freight charges, or other adjustments, including allocation for a price leader.

Setting a price for an established product is generally less difficult than pricing a new product.

Estimating Demand

Key steps include:

1. Determine if there is a market-expected price.
2. Estimate potential sales volume at various price points.

Note:

• This is usually expressed as a price range rather than a specific amount.
• Intermediaries should be considered; it is easier to promote products if they align with their pricing expectations.
• Setting a price much lower than market expectations can lead to lost sales.