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

Understanding Poverty in America

Defining Poverty and Its Scope

Political conflict over poverty in America begins with disagreement over its nature and extent, and then it proceeds to disputes over its causes and remedies. While many anti-poverty programs are largely regarded as federal programs, many allow states to set their own eligibility criteria and benefit levels, and are a blend of federal and state government funds. The official poverty rate in the U.S.A. has ranged between 11% and 15% in recent years. This official definition of poverty includes all those Americans whose annual cash income falls below that which is required to maintain a decent standard of living. The official poverty rate varies considerably among the states; poverty... Continue reading "Poverty, Public Health, and Healthcare in the United States" »

Key Business and Economic Terms

Globalization: A process of interaction and integration among people, companies, and governments of different nations.

Infrastructure: Basic facilities and services of a country, for example, roads, water, and power.

Issues: Important subjects that people discuss.

Profitability: The ability of a business to make money.

Welfare benefits: Money paid by the government to people in need, for example, the unemployed.

Flight of capital: A movement of large sums of money out of a country.

Rule the roost: To be the person who makes all the decisions in a group.

Adjective Order in English

When using multiple adjectives, follow this sequence: opinion, size, age, shape, color, origin, material, purpose/qualifier/be about.

Brand Management

Have you ever come across a food product at the supermarket with a label saying Fair Trade? You may have wondered what exactly that means. Fair trade is an arrangement designed to help producers in growing countries achieve sustainable and equitable trade relationships.

Fair trade has two main objectives. On the one hand, the development of peoples. On the other hand, the fight against poverty.

The objectives are based on several pillars: Firstly, producers must have a minimum wage. Secondly, workers should not be children. Finally, the products shall be environmentally friendly.

Consumers pay more attention to the origin of the products they consume. They take into account, for example, how it has been obtained and they are willing to pay more... Continue reading "The Impact of Fair Trade and Ethics on Modern Society" »

Components of International Economic Accounts

Factor Income and Receipts

The Factor Income consists largely of payments and receipts of interest, dividends, and other income generated on foreign investments that were previously made.

Unilateral Transfers Defined

Unilateral Transfers, the final category of the Current Account, are one-way payments that do not require a counter-compensating monetary action. Examples include:

• Foreign aid and reparations
• Official and private grants
• Donations and gifts

The Capital Account Structure

The Capital Account includes all purchases and sales of assets such as stocks, bonds, bank accounts, real estate, and businesses. It measures the difference between a country’s sales of assets (e.g., US, Colombia) to foreigners... Continue reading "Global Economic Flows: Capital Accounts and Trade Drivers" »

Sensitivity Analysis

2 Members of the Restrictions:

Sensitivity analysis is important because it allows us to determine the opportunity cost of resources.

Obtain Efficient Solutions

By optimizing one objective and considering the other as a parametric constraint, we can obtain an efficient solution for each value between its ideal and anti-ideal points of the objectives included as parametric constraints in the model.

Difference in Pairwise Comparisons in AHP and PROMETHEE

There are two types of pairwise comparisons in AHP: between criteria in the same level with respect to a criterion in the next higher level and between alternatives with respect to a criterion in the next upper level of the hierarchy. PROMETHEE is only based on pairwise comparisons... Continue reading "Multi-Criteria Decision Analysis: Key Concepts and Techniques" »

Tax Deductions: An International Comparison

Income Tax Imposition

Income tax is imposed on gross income minus deductible expenditures. Generally, you cannot use expenses from one category of income to offset profits belonging to another. Expenses related to business activity may have specific deductions, while employment income often has standard deductions. Personal expenditures are generally not deductible. Mixed business and personal expenses are generally not deductible unless specific rules apply. For example, the UK does not allow deductions for mixed expenses. However, some countries like Australia, Sweden, and France allow deductions upon apportionment.

Specific Deductible Expenses

Commuting Expenses

Travel from and to work is generally... Continue reading "Tax Deductions and Capitalization: International Comparison" »

7) Describe the Ways in which database technologies could be used by an office stationery Supply company to achieve low-cost leadership.

Answer: Sales databases Could be used to make the supply chain more efficient and minimize warehousing And transportation costs. You can also use sales databases, as well as text Mining and sentiment analysis, to determine what supplies are in demand by Which customers and whether needs are different in different geographical Areas. Business intelligence databases could be used to predict future trends In office supply needs, to help anticipate demand, and to determine the most Efficient methods of transportation and delivery.

8) Describe the Ways in which database technologies could be used by a toy manufacturer

Core Financial Metrics

• Revenue: Money received from customers.
• Gross Profit: Profit after direct costs.
• Net Profit After Tax: Profit after all costs and taxes.
• Retained Profit: Money reinvested in the company.

Operational Costs and Liabilities

• Cost of Goods Sold: Direct costs, e.g., materials and labor.
• Operating Cost: Other costs, e.g., administration, buildings, utilities.
• Tax: Money paid to the government.
• Depreciation: Loss in value of equipment.
• Dividends: Money distributed to shareholders.
• Bid: An offer of money for something at an auction.
• Asset: Anything owned by a person or company that has monetary value.
• Stock: Goods available for sale, distribution, or use.

Debt and Liquidity Terms

• Overdraft: An amount of money by which a bank account is overdrawn.

Public Relations

1. History: The International Public Relations Association (IPRA) was founded in the 40s when several Dutch and British PR practitioners discussed organizing PR professionals into a transnational society. Their goal was to raise standards of PR practice worldwide and improve the quality of PR practitioners. IPRA was established in London on 1 May 55. Nowadays, IPRA is an international organization with members from emerging and established countries. IPRA is governed by a secretariat in the UK. IPRA represents individual professionals, not agencies or companies. IPRA is recognized as an international non-governmental organization by the United Nations and has been granted consultative status by the Economic and Social Council... Continue reading "International Public Relations: Importance, Tips, and Strategies" »

The Second Industrial Revolution (1870-1914)

Rapid Industrialization

The Second Industrial Revolution was characterized by rapid industrialization due to the increased importance of the financial sector in industry and the rise of finance capitalism.

Innovations and Changes Leading to Increased Production

Innovations and changes led to an increase in production, including:

• New sources of finance: Joint-stock companies, banks, and stock exchanges provided new ways to raise capital for businesses.
• New business structures: Cartels, trusts, and holding companies emerged to reduce competition and increase efficiency.
• New technological advances: Improvements in the Bessemer converter, the invention of dynamite, stainless steel, and artificial fibers revolutionized