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

The Origins of the Capitalist System

Mercantilism

Mercantilism is an economic theory driven by the need to build national wealth, understood as the accumulation of wealth, gold, and silver. As countries generally do not possess large natural reserves of these precious materials, the only way to accumulate them was through trade. This meant developing a positive trade balance, or in other words, ensuring that exports exceeded imports, as international payments were made in gold and silver.

Physiocracy

Physiocracy is an economic theory that considers the primary sector to be the only genuinely productive sector of the economy, capable of generating a surplus upon which all else depends. It is the only sector capable of creating wealth.

Economic Liberalism

Economic... Continue reading "Understanding the Capitalist System: Origins and Principles" »

The main purpose of the marketing plan is to be a concrete instrument for directing and coordinating the marketing effort of the company. The marketing plan is a document regulating commercial policy across the enterprise, goals, concrete actions, and timetable which take place.

Stages of Marketing Plan Development

• Analysis of the Situation. It is necessary to collect, analyze, and evaluate basic data for proper development of the plan. This analysis involves: Analysis of the actions undertaken by the company in prior periods; Study of the environment; Company image, products, sector, etc.; Staff qualifications (management, etc.); Distribution network (type of outlets, etc.); Competition (market share, etc.); Product (developed technology, costs,

Market Dynamics: Competition and Demand

Pure monopoly is a rare case. More frequently, several companies compete in markets. Suppose, for example, that four companies producing toothbrushes face the market demand curve shown in a graph. These companies produce a total of 20,000 toothbrushes daily, selling each for $1.50.

At this price, the market demand is inelastic, with an elasticity of -1.5.

Market vs. Firm Demand Curves

The graph (A) shows the market demand for toothbrushes. Graph (B) shows the demand for toothbrushes as seen by Company A. While the market demand elasticity at $1.50 is -1.5, Company A faces a much more elastic demand curve (Da) due to competition from other businesses. At a price of $1.50, Company A's demand elasticity is -... Continue reading "Market Dynamics: Firm Demand and Monopoly Power" »

Major Shareholders' Rights

• Right to Receive Dividends: Shareholders have the right to receive dividends declared by the company.
• Right to Participate in Net Assets: In the event of company liquidation, shareholders have the right to participate in the distribution of net assets.
• Preemptive Rights: Shareholders have preemptive rights in capital increases, allowing them to purchase new shares before they are offered to the public. These rights are often negotiable.
• Voting Rights: Shareholders have the right to vote in general shareholder meetings. Each share typically allows one vote, although there may be shares that do not grant voting rights in exchange for economic benefits.
• Right to Information: Shareholders have the right to access information

Public Sector Institutions

Public sector institutions are characterized by activities that respond to political decisions. These are typically non-market institutions responsible for public administration.

They provide services to all citizens that often can only be acquired through collective political decisions, such as security and justice.

Types of Public Administration

• Central State Administration: Includes autonomous administrative bodies.
• Territorial Administration: Comprises autonomous regional and local administrations.
• Social Security Administration: Manages social welfare programs.

Decentralization aims to satisfy the right to self-government of the state's territories.

Functions of the Public Sector

• Regulate economic and social relations.

Strategic Management

Strategy is the set of decisions a company can take on actions to be undertaken, and the resources that can be used in these actions. However, to achieve a series of business objectives at various levels, success must be sought. All management is given a rating based on economic, technological, or social factors, and considering the possible reactions that may occur against the competitive strategies of the company.

Items

Strategic Analysis

Before defining a strategy, a set of underlying elements must be considered as the basis for good strategic management:

1. Economic, Social, Political, and Technological Environment: Influence of external factors.
2. Strategic Capacity: Weaknesses that must be avoided and strengths that must be

Factors That Influence Price

6.5 Factors That Influence the Price

For a business, the first consideration will be the objective to be enforced, and secondly, the marketing mix. Empresa1 is set by factors. The company has the following objectives:

• Obtain the maximum benefit from the product they sell.
• Achieve maximum return on the investment made.
• Increase sales in the market.
• Be the leader in a segment or a product.
• Market segments at the start of competition.
• Create an image and reputation through the marketing mix.
• Get brands to better position themselves in the market.
• Obtain more benefits and price competitive differentiation.
• Stay in the market and evolve.

2. Marketing Mix

In the product, influences include (image, collateral design, additional services)

Tema.la Commercial Function

Analysis of the Trading System

The Market

Marketing occurs when individuals or companies desire a product or service and have the economic capacity to satisfy that need. We can distinguish between:

• Consumer Market:
  • Difficult to quantify potential consumers.
  • Purchases meet subjective needs.
  • Prices are determined by the market.
  • Small volume transactions.
  • Manufacturing based on market demand.
• Industrial Market:
  • Easy to quantify due to planned dimensions.
  • Prices are negotiated.
  • Large volume purchases.
  • Manufacturing based on demand and consumer behavior.

Demand

Demand encompasses all activities and organizations involved when individuals seek, evaluate, use, and dispose of goods or services to meet their needs. These activities are:

• Complex
• Vary

Company

Definition: A company is an organization with a performance objective, producing goods and services. It is the basic unit of production. Companies work to select products and combine factors of production to achieve their objectives.

Through production activities, raw materials and intermediate products are transformed into end products using capital, labor, technology, and knowledge.

Business Classification Criteria

1. Goods and Services Produced

Businesses are classified according to the goods and services they produce.

2. Economic Sectors

Businesses are categorized by their economic sector.

3. Sub-sectors

Companies are defined by their specific activity within a sub-sector.

4. Legal Status

• Individual Companies: Private companies, often small

Maslow's Hierarchy of Needs

Abraham H. Maslow, the author, highlights the humanistic theory, classifying human needs into five levels that should be met progressively. These needs are a source of motivation that diminishes as they are satisfied.

• First are the physiological needs, which are basic needs.
• But when the primary needs are well met, safety needs appear. These somehow serve to consolidate what has been achieved so far, such as an indefinite contract or insurance.
• Social needs group needs like love, affection, and feeling accepted by the community. In a company, this means feeling considered, respected, and integrated.
• After that appear the esteem needs. These are the needs to have confidence in yourself, have fame, and prestige. In a company