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

Wealth

An abundance of valuable possessions or money.

Plentiful supplies of a particular resource.

HDI ranking:

The rank a country has in the HDI index (Human Development Index that measures health, education, and standard of living.)

The Millennium Development Goals:

(MDGs) are the eight international development goals or targets that were established following the Millennium Summit of the United Nations in 2000 for reducing global poverty.

Infant mortality rate:

Number of babies who may die under the age of 1 per 1000 live births.

GNI per capita:

Gross national income (the total income for a country computed by taking the value of goods, services, and the money received from abroad) divided by the population of the country.

Life expectancy:

Number of... Continue reading "Understanding Wealth and Development Indicators" »

Step 1 Review the Marketing Plan

1. What product/service is being marketed?
2. What is known about the market where the brand will compete?
3. What are the brand's marketing objectives?
4. How is the marketing communication expected to contribute to the marketing objectives?

Step 2, Selecting a Target Group

1. What are the relevant target buyer groups?
- Select a primary target buyer group: Existing customers (repeat purchase) / Non-customer (trial)
- Potential target audiences in terms of brand attitudes: BL (Brand loyal), FBS (First brand switchers), OBL (Other brand loyal), OBS (Other brand switchers), NCU (Non-customers)
- Communication strategies will differ significantly, depending upon the target group.
+ If the target is primarily BL or FBS,... Continue reading "Developing a Marketing Plan for Brand Success" »

Lack of Homogeneity of Costs Allocated to Sections

Activity-Based Costing (ABC) systems shift the focus from cost centers to activities, and from activities to cost drivers. An activity is defined as a group of operations or tasks necessary to produce its outputs. An activity should have variables that measure the units of output and performance. The concept of the center of analysis as a mere cost pool is replaced by the concept of activity, which requires the participation of several sections or departments to be completed.

A cost driver measures the output of an activity and is also the cost-assignment unit. It allows the assignment of the activity cost to a cost object as a function of the amount of the driver. Causality should be the criterion... Continue reading "Activity-Based Costing: A Comprehensive Approach" »

Segmenting Business Markets

Business buyers can be segmented geographically, demographically or by benefits sought, user status, usage rate and loyal status. Almost every company serves at least some business markets. (Ex. Starbucks has developed marketing programs for coffees and for food).

Segmenting International Markets

Few companies have the resources to operate in all, or even most of the countries of the world. Some large companies, sell products in more than 200 countries, but most international firms focus on a smaller set of countries. Different countries, can vary greatly in their economic, cultural and political make up. Companies can segment international markets using one or a combination of several variables. They can segment by:... Continue reading "Segmenting Business and International Markets: Requirements and Strategies" »

Financial Statement Calculation Flow

The following outlines the calculation of key profitability metrics:

EBITDA Calculation

EBITDA =

• (1) Revenue
• +- (2) Changes in Inventories of Finished Goods and Work in Progress
• + (3+5+9+10) Other Operating Revenue
• - (4) Supplies
• - (6) Personnel Expenses
• - (7) Other Operating Expenses
• +- (11b) Results Arising from Fixed Assets

Operating Result Before Exceptional Items

Operating Result Before Exceptional Items =

• EBITDA
• - (8+11a) Amortization, Depreciation, and Impairment

EBIT Calculation

EBIT =

• Operating Result Before Exceptional Items
• +- (12+14+15+16) Returns on Financial Investments

EBT Calculation

EBT =

• EBIT
• - (13+15) Financial Expenses

Profit/Loss from Ordinary Activities (Net of Tax, Pre-Exceptional)

Profit/Loss from Ordinary

Elemental Health Systems

Elemental Health Systems associated earthly elements with the delicate balance necessary to maintain a healthy life. Some of the qualities associated with these elements (fire, water, air, metal, etc.) are:

Check ALL that apply:

• Body parts/paths known as meridians
• Types of food to eat or to avoid
• Seasonal qualities

Public Health Systems

Public Health systems can be defined as a system of healthcare designed to be accessible to the entire society/country. During the Middle Ages in Europe, care for the sick was mainly the responsibility of the church in power.

Medical History Overview

In the Medical History Overview, we read that early medicine incorporated both natural and supernatural means for treating disease. Mesopotamian

Foreign Exchange Market

The foreign exchange market is a global decentralized market for trading currencies. Like any other market, it operates on the principles of demand, supply, and price.

Nominal Exchange Rate

The exchange rate represents the price of one currency in terms of another. There are two types:

• Direct exchange rate: The cost of one unit of foreign currency is given in units of local currency (e.g., 1 USD = 0.94 EUR).
• Indirect exchange rate: The cost of one unit of local currency is given in units of foreign currency (e.g., 1 EUR = 1.06 USD).

Changes in exchange rates influence relative prices. Currency appreciation occurs when the local currency strengthens, allowing you to buy more foreign currency. This increases the relative price... Continue reading "Understanding Foreign Exchange Markets and Exchange Rates" »

Scarcity

The limited nature of society’s resources.

Economics

The study of how society manages its scarce resources.

Efficiency

The property of society getting the most it can from its scarce resources.

Equity

The property of distributing economic prosperity fairly among the members of society.

Opportunity Cost

Whatever must be given up to obtain an item.

Marginal Changes

Small, incremental adjustments to a plan of action.

Market Economy

An economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services.

Market Failure

A situation in which a market, left on its own, fails to allocate resources efficiently.

Externality

The uncompensated impact of one person’s actions on... Continue reading "Fundamental Economic Terms & Definitions" »

Outsourcing an IR Process

Advantages:

1. Services provided by professionals trained in IR.
2. 24/7 monitoring.
3. Early notification of potential problems in the region.

Disadvantages:

1. Potential loss of control of response to incidents.
2. Possible exposure of classified organizational data to service providers.
3. Locked in to proprietary equipment and services.

Long Before a DOS: Six Tasks

1. Coordinating with the ISP.
2. Collaborating and coordinating with professional response agencies.
3. Implementation of prevention technologies.
4. Monitoring resources.
5. Coordinating the monitoring and analysis capabilities.
6. Setting up logging and documentation.

Potential Containment Strategies

1. Monitoring system and network activities.
2. Disabling access to compromised systems.
3. Changing passwords.
4. Disabling