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

1.The interest rate on a One-year bank deposit in Brazil is 6%.  In the US it is 2.2%.  The Exchange rate is 3.9 reals/$.  If an American investor deposited $1,000 in a Brazilian bank for one-year, then Brought the funds back to US, what would his/her rate of return be if (a) the real appreciates to 4.1/$, (b) the real depreciates to 3.5/$, (c) the real/$ Exchange rate doesn’t change? 

1000*3.9 = 3900*(1+0.06)= 4134

(a)If real appreciate to 4.1 Real/dollar

he gets = $4134/4.1 = $1008.29

(b) depreciation to 3.5 Real/dollar

He gets = 4134/3.5 =$ 1181.14

(c) at the constant rate:

He gets = 4134/3.9 = $1060

2.What does it mean to say The macro-economy is in internal balance?  In external balance?

By internal balance it means that the unemployment... Continue reading "Macroeconomic Equilibrium and International Finance Concepts" »

4) China (Crisis/ Devaluation of currency/ Economy)

In 1978, China was one of the poorest countries in the world, but since the market reforms in that year, it has become one of the most powerful economic countries with a great potential. Its GDP has grown about 10 percent per year during the last 30 years, being the country with the biggest economic growth around the world, thus the living standard has reached that of a welfare society because about 500 million people are out of poverty. Moreover, it is the largest manufacturing economy in the world, the most important exporter of goods, the fastest growing consumer market, and the second major importer of goods in the world. For these reasons, with a population of 1.3 billion, it has become... Continue reading "China's Economic Growth and Challenges" »

The purpose of economy is production of conditions and services for consumption now or in the future.

Business Financing Sources for Startup Companies

Understanding Startup Financing Needs

When a company is founded, it is called a startup company. A startup company is a business that is in the first stage of its operations. These companies are often initially financed by their founders as they attempt to capitalize on the development of a product or service for which they believe there is a demand.

Due to limited revenue and initially high costs, most of these small operations are not sustainable and require significant financing to survive. A common challenge for these nascent companies is the difficulty in securing external financing, as the majority of investors may not rely on their solvency and liquidity because their operational activity... Continue reading "Securing Capital: Essential Business Financing Methods" »

The Quality Management System and the After-Sales Service

The QMS is a management system for a customer-focused organisation that involves all employees in a continuous process of improvement. They integrate quality in all activities of the company. It is necessary to set up quality standards, procedures, and work practices. The goal is to maintain a competitive advantage, evaluate a company's performance, and achieve business excellence. Every company that has passed the quality audit and is registered for ISO9000 gets a certificate. This certificate guarantees a quality standard and transmits confidence in the product and services offered by the companies that use them.

In the After-Sales Service Quality

Internal quality: the technical and operational... Continue reading "Quality Management System and After-Sales Service: Techniques, Tools, and Structure" »

Asset Demand

Money held as an asset (e.g., under the mattress) is influenced by the risks associated with such storage and inflation rates.

Banking

Banking involves various financial institutions transferring funds from lenders to borrowers.

Main Financial Institutions

Primarily commercial banks, but also:

1. Savings and Loan Institutions (SLs): Smaller scale, typically locally focused.
2. Insurance Companies: Life insurance policies involve ongoing deposits, with the insurance company returning funds with interest if the policyholder doesn't die. Thus, insurance companies actively facilitate lending to firms.
3. Mutual Funds: Pool household savings, managed by experts, offering diverse products to different customers.
4. Pension Funds: Supplement social security,

As requested at the meeting of 27 February, here is my report.

How can we improve employee satisfaction?

The purpose of the report is to suggest ways to improve the employee satisfaction and the staff motivation. It is based on the figures in the book showing the percentages. I have decided to divide the report into three sections: background, findings, and recommendations.

Looking at the results (Background)

As can be seen in the table in our notes book, employee satisfaction has been falling over the last year, and employee turnover and guest satisfaction are both being affected. This has led to a situation where it is necessary to encourage the employees.

Keys of the problem (Findings)

The employee turnover is very high. As mentioned above, satisfaction... Continue reading "Improving Employee Satisfaction and Motivation" »

Business Ethics

2) Business ethics (Business corruption/ Tax fraud/ Tax havens, crimes/ Politics and the economy)

Business ethics are moral principles that guide the way of a business behaviour.
Acting in an ethical way involves distinguishing between “right” and “wrong” and then making the “right” choice. As an ethical behaviour, company must avoid the pollution or the use of children for their activities. A measure for solve this is to make codes behaviour in the companies. Another type of business ethics is to pay the taxes and don't avoid it. Tax avoidance could be legal if a businessman finds a legal vacuum in the rules of the tax system, but the question is if it is ethical. Evidently, the answer is negative, as the spirit... Continue reading "The Impact of Business Ethics on Society" »

Ethical Business Practices and Reputation

Businesses should operate ethically to safeguard their reputation, image, and profitability. Benefits include attracting and retaining high-quality workers and customers, generating positive publicity, and fostering strong business relationships.

Political Influences on Business Activity

Government Intervention and Policy

Governments: Utilize legislation and policies to oversee business behavior and influence activity (often referred to as an Interventionist approach).

Policies: Involve the use of taxation and government expenditure (Fiscal Policy), and the manipulation of interest rates (Monetary Policy) to affect the money supply and exchange rate, thereby influencing overall business activity.

• Deregulation: