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

National Income Accounting Formulas

Gross Domestic Product (GDP) and Growth

• GDP = C + I + G + (X - M)
• GDP per capita = GDP / Population
• Real GDP = (Nominal GDP / GDP Deflator) × 100 (GDP adjusted for the inflation level)
• Real Economic Growth Rate = [(New Real GDP - Old Real GDP) / Old Real GDP] × 100%

GNI, NNP, and Green GDP

• GNI/GNP = GDP + Net Income from Abroad (Income from abroad - income sent abroad)
• GDP = GNI - Net Income from Abroad
• NNP (Net National Product) = GNP - Depreciation
• Green GDP = GDP - Environmental Costs of Pollution

Consumption, Saving, and the Multiplier

• MPC (Marginal Propensity to Consume) = Consumption (C) / Income (Y)
• MPS (Marginal Propensity to Save) = Saving (S) / Income (Y) OR MPS = 1 - MPC
• MPC (Marginal Change) = Change in Consumption

The Medieval Economic Structure

Feudalism and the Agricultural Economy

During this period, society had an agricultural-based economy, combined with a feudal system. This system consisted of a king served by vassals (like dukes, counts, or barons) who gave him an oath of fealty in homage.

The Role and Regulation of Medieval Guilds

Industry revolved around guilds. These were centers of medieval "industrial" production—trade, professional, and craft organizations of Roman origin—and served as the "business units" of the Middle Ages. They functioned as a kind of exclusive union, though they were unions of masters, not workers.

Guilds regulated production and social conduct. Unlike a modern firm, the primary purpose of a guild was not first and foremost... Continue reading "Feudalism, Guilds, and the Moral Economy of the Middle Ages" »

Understanding Organizational Environments and Culture

Key Concepts and Strategies

Direct Investment Strategies

1. What are the three main strategies for direct investment?

Answer: Greenfield venture, Acquisition, Joint Venture

Business Intelligence

2. What approach uses sophisticated software to analyze internal and external data for patterns and trends?

Answer: Business Intelligence

Types of Cultural Culture

3. What are the types of cultural culture?

Answer: Adaptability, Achievement, Involvement, and Consistency

Real-Time Information and Strategic Decision-Making

4. According to Eisenhardt (1989), how does the use of real-time information impact the speed of the strategic decision process?

Answer: The greater the use of real-time information, the greater... Continue reading "Understanding Organizational Environments and Culture: A Comprehensive Guide" »

Systems:

Since its inception, the EFQM Model has provided a blueprint for organisations across and beyond Europe to develop a culture of performance and innovation. Allows organisations to embrace change, drive performance and evolve for the future. Here are just some of the Model benefits:

• Define your purpose:

Purpose is the lifeblood of any organisation. Without it, there is no reason to serve. The new EFQM Model places an unparalleled emphasis on the importance of purpose, vision and agile strategies to organisations if they are to create sustainable value.

• It helps create your culture:

The new EFQM Model is an innovative culture creator, valuing core quality beliefs and shared goals at the heart of organisations whilst allowing them to remain... Continue reading "EFQM Model and ISO 9001:2015 Quality Management Principles" »

Trip to Denver: Global Professional Search – what employers look for.Skills: Language Proficiency and other “Power Skills”Language skills-second language/Lack of set skills (now referred to as “power skills”)-writing: business, english language-tolerance for ambiguity-cultural intelligence (competing global mindset: 3 elements)-problem-solving and decision-making (work in teams and operate in situations of conflict)-self-confidence.The monoglot ceiling.The Expatriate (Expat) – what is an expat?Today, regardless of the size of an org.(entre,small,medium) there exists a need for expats that possess a specific skill-set. expat: someone who works(live) abroad representing an org . HR execs look for 2 primary determinants that form their... Continue reading "Global Professional Search: Skills Employers Look For" »

The Eurocurrency and Eurodollar Markets

The term Euromarkets is often used to refer to the Eurodollar market. This sector encompasses the Eurocurrency, Eurobond, Euronote, and Euro-commercial paper markets.

Key Market Participants

• Large commercial, investment, and central banks
• Multinational Corporations (MNCs)
• International institutions like the World Bank and IMF

Operations are primarily centered in London, with significant activity in Paris, Brussels, and Frankfurt.

Defining Eurocurrency

A Eurocurrency is a freely convertible currency deposited in a bank outside its country of origin (e.g., US dollars held in a London bank). The Eurocurrency market consists of Eurobanks that accept deposits and issue loans in foreign currencies.

This market thrives... Continue reading "Understanding the Eurocurrency and Eurodollar Markets" »

Understanding Comprehensive Community Planning

Comprehensive planning involves the identification of community goals, the development of plans to implement these goals, and the use of governmental tools to influence and shape private and public decision-making to serve these goals. While the formal role of planners is advisory, they can have a substantial influence on community policy. In smaller cities, planners may be primarily tasked with the day-to-day administration of the zoning and subdivision control ordinances.

Limitations on Planners and the Role of Zoning

There are some limitations on the influence of planners. First, many important decisions in community development are made by private enterprise rather than by government. Real estate... Continue reading "Community Planning, Taxation, and Fiscal Stress in Government" »

Characteristics of a Financial Plan

• It's a roadmap that can be used to guide a company into the future.
• Can be used to attract investors.
• Explains how a business will manage its records and why.
• Describes any legal agreements that influence the way records are kept.

Six Things an Effective Plan Contemplates

• Identifies the assets that need to be purchased.
• Describes the amount of money a business needs to start and operate.
• Describes the expenses the business will incur and explains how a business will cover its expenses.
• Describes how a business will document and report financial reports.
• Forecasts finances to project future profitability.
• Explains how the business will acquire money to grow or expand.

Startup Capital

Startup capital is the money used to... Continue reading "Financial Planning and Accounting for Startups" »

Perfect Competition

Characteristics

1. Companies cannot influence product prices.
2. Market share does not influence market price.
3. Consumers are fully informed.

Monopolistic Market

Characteristics

1. Monopolists control prices, producing most or all goods.
2. Monopolists can manipulate supply to inflate prices.
3. Consumers face limited choices and potentially unfair pricing.

Inefficiencies of a Monopolistic Market

1. Allocative Inefficiencies: Society's resources are poorly allocated, limiting consumer choice.
2. Productive Inefficiencies: Lack of competition stifles innovation and service improvement.
3. Deadweight Loss: Monopolists' arbitrary pricing leads to social welfare loss.

Perfect Competition vs. Monopolistic Market

Example

• Competitive Market: Multiple gasoline companies;

Types of Advertising Agencies

There are many ways to classify advertising agencies. They can be classified according to:

• Scope: National and International
• Type of service they offer:
  • Advertising agencies proper.
  • Full-Service Agencies, Creative Boutiques.
  • Media Agencies
  • Specialized agencies (Promotions, Direct Marketing, Viral Marketing, Public Relations, Press Office, etc.).
  • Exclusive Agencies

Services Offered by Agencies

Agencies can offer all or some of the following services:

• Creativity: This is the core of their service, their reason for being.
• Marketing consultancy.
• Complementary services: promotional communication, direct marketing, merchandising, events, etc.
• Management of audiovisual, graphic, and event production.
• Planning and buying media.
• International