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

Negotiation Process

Basic Elements in a Negotiation:

• Communication Process: It's the means through which negotiation results are constructed.
• Persuasion: Involves using words, silences (active listening), and gestures.
• Resolving Differences: Different needs enable value creation through idea generation.
• Result-Oriented: Focused on achieving win-win, win-lose, or lose-lose outcomes.
• Formal Process: Each phase contributes to the final result.
• Impacts Relationships: Cooperation positively affects negotiation outcomes.
• Cooperative Attitude: Parties work together for mutually beneficial solutions.

Closing Techniques:

• Summary Close: Summarize key points leading to a logical conclusion.
• Alternative Close: Offer two choices to move the deal forward.
• Artisan Close:

Carrier

A company that carries goods by road.

Freight Forwarder

A person or business that arranges documentation and travel facilities for companies dispatching goods to customers.

Supplier

A company that supplies parts or services to another company, also known as a vendor.

Haulier

A company that carries goods by road.

Courier

A company that specializes in the speedy and secure delivery of small goods and packages.

Consignee

A person or firm named in a freight contract to whom goods have been shipped or turned over for care.

Transshipment

The loading of goods from one means of carriage onto another.

Break-bulk

The packing of goods in small, separable units.

Cross-docking

The direct flow of goods from receipt at the warehouse to shipping, bypassing storage.

BRICS: Formation & Core Pillars

Introduction to BRICS

BRICS is a group of five major emerging economies—Brazil, Russia, India, China, and South Africa. Established in 2009 (South Africa joined in 2010), BRICS aims to foster cooperation in economic, political, and cultural fields among developing nations and to create a multipolar world order.

Main Pillars of BRICS

• Political and Security Cooperation

  Promotes peace, security, and development.

  • Supports a multipolar world and democratic global governance.
  • Opposes terrorism and promotes UN reforms to make global institutions more representative.

• Economic and Financial Cooperation

  Focuses on trade, investment, infrastructure, and sustainable development.

  • Created the New Development Bank (NDB) to fund

Exercise 1

a) Adaptation

• Product:
  • Pro: Greater local acceptance.
  • Con: Increased production costs.
• Placement:
  • Pro: Improved accessibility.
  • Con: Logistical complexity.
• Price:
  • Pro: Enhanced local competitiveness.
  • Con: Inconsistent brand perception.
• Promotion:
  • Pro: Greater cultural relevance.
  • Con: Higher marketing campaign costs.

b) Standardization

• Product:
  • Pro: Economies of scale.
  • Con: Less adaptation to local tastes.
• Placement:
  • Pro: Logistical simplification.
  • Con: Less market coverage.
• Price:
  • Pro: Brand consistency.
  • Con: Less competitive in some markets.
• Promotion:
  • Pro: More cost-effective global campaigns.
  • Con: Less cultural effectiveness.

c) Suggested Decision

I would recommend a hybrid strategy, adapting key aspects (like flavor and promotion) to local markets while... Continue reading "Adaptation vs. Standardization in Marketing" »

Structure-Behavior-Performance Paradigm

The structure-behavior-performance paradigm, the basis of traditional industrial organization (IO), examines how companies behave within a given market structure. The new IO, however, inverts this logic, starting with how strategic behavior affects market structure. Both approaches agree that market structure influences market outcomes.

Defining Markets

Standard Production Classification

One method to define markets uses standard production classification. This system builds concentration data, but requires classifying multi-product companies. The procedure is:

1. Classify companies by their main product based on sales.
2. Calculate total sales for each market.
3. Calculate market shares and concentration indices.

Companies... Continue reading "Market Structure, Behavior, and Performance: Analysis" »

Steady State in the Solow Growth Model

In the Solow growth model, the steady state refers to a long-run equilibrium where key economic variables (such as capital per worker, output per worker, and consumption per worker) do not change over time. This occurs when the economy reaches a point where the capital stock per worker, k, is constant because investment (savings) equals depreciation, and no additional net investment is happening.

The IS Relation and Goods Market Equilibrium

The IS relation (or IS curve) represents the relationship between the interest rate (r) and the level of output (Y) that ensures equilibrium in the goods market. It reflects the combinations of interest rates and output levels at which the total demand for goods equals... Continue reading "Macroeconomic Concepts: IS-LM, Solow Model, Natural Rates" »

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" »