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

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.

Conditions of Supply

• Product/Service Price, Quality, and Delivery Times

• Policy Provider Stocks

  (Including customer deposits)

• Minimum Orders for Products and/or Delivery

  (Effect of transport)

• Type and Mode of Transport

  (Who manages?)

• Contact and Delivery Addresses

• Inter-Agency Partners

  (Including transportation, logistics operators, etc.)

• Date and Schedules

  Discharge Planning

  (Time windows)

• Packaging and Palletization

• Coding, Identification, and Related Documents

• Batch Management and Disqualifications

  (Traceability)

• Special Conditions of Product Conservation

• Rejection Criteria

  (Defined tolerances on price, quality, deadlines, quantities, references, etc.)

• Incident Procedure, Returns Due to Rejections

  (What to do with the product, who collects, what penalties

Consumer-to-Consumer

This business model focuses on transactions between consumers, often facilitated by an intermediary company that connects supply and demand for goods or services.

Chain Stores

These retail organizations operate multiple stores with a standardized product mix and centralized control.

Visit Analysis

This analysis optimizes vendor activity by examining the types of visits made to customers.

Visit Reports

Written reports summarizing customer visits.

Distribution Channels

The paths that products or services take from manufacturer to consumer.

Human Capital

The value of an individual's skills and talents.

Boxed Offers

Manufacturers offer discounts to wholesalers who purchase products by the box rather than individually.

Cow Milk

A product with... Continue reading "Consumer-Centric Business Strategies & Tactics" »

Corporation Tax in Spain

Corporation Tax

It is regulated by:

• Royal Decree 4/2004 of March 5, approving the Revised Text of the Corporations Tax Act (amended in 2006 and 2007 in commercial law).
• Royal Decree 1777/2004 of July 30, approving the Regulation of Tax.

1. Taxable Event and Accrual

The taxable event is the obtaining of income by a legal person with residency in Spanish territory. The revenues that are included are:

1. Economic activities.
2. Farm yields.
3. Income from the assets of the company.
4. The revenues obtained in the transfer of company assets.
5. The revenues from foreign operations, including:
   1. Income from the sale of the company abroad.
   2. Income from shares acquired in foreign companies.
   3. Income earned by permanent establishments or subsidiaries constituted

Advantages and Financing in the Stock Market

As we know, the stock market is a niche market where domestic savings are channeled and external investment in productive activities, making them available to those seeking financing on attractive and competitive terms. In this way, different companies and projects will find significant opportunities in this market to finance their needs, which will also usually be advantageous. Then let's review the reasons behind these possibilities.

Potential Beneficiaries: Issuers

The issuer gives rise to the securities that are traded on the market. Its emissions derive from its lending strategy, which in turn depends on the purpose of use of resources captured.

It can be argued that any person or entity is a potential... Continue reading "Stock Market: Advantages and Financing for Companies" »

Internal vs. Foreign Markets

Develop internal markets within a country's natural geographic barriers. While foreign markets undergo internationalization (all productive or commercial activities in a context of globalization), the company performs outside its natural geographic markets. There are different degrees of internationalization:

• Exporting
• Direct investment (sales subsidiaries and production subsidiaries)
• Contractual arrangements for international cooperation (licensing, franchising, joint ventures, export consortia)

The Multinational Company

A multinational company is one that is not only established in its country of origin but also in other countries to conduct its business activities, including sales, purchasing, and production.

Benefits

Accelerated Industrialization in Spain

The period of accelerated industrialization in Spain involved significant political and structural changes, shifting the economy from a pre-industrial to a modern, industrial one. Industry became the primary engine of growth.

Between 1960 and 1974, the industrial sector experienced explosive growth, with rates exceeding 4%. This period saw a significant sectoral transformation. The primary sector's production and employment declined, while the industrial sector expanded. Spain's open economy was a key factor in this progress. The main drivers of change were domestic consumption, foreign markets, and industrial demand, with the latter being the largest contributor.

Consumer-Domestic Demand

Domestic demand experienced... Continue reading "Spanish Industrialization: Growth, Transformation, and Challenges" »