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

The Genesis of Modern Currency

With the decline of feudalism in Europe, markets began to organize and expand. Keeping gold at home became dangerous, leading to the emergence of specialized houses, often run by goldsmiths, that held gold securely. In exchange for deposited gold, people received certificates, which soon gained an equivalent value to the gold itself. Gradually, individuals stopped withdrawing their physical gold, relying solely on these certificates for transactions. This evolution marked the precursor to modern banking systems.

From Commodity to Symbolic Money

The pivotal moment when currency transitioned from a commodity to a mere symbol occurred when its exchange value surpassed its intrinsic use value. In this symbolic form,... Continue reading "Understanding Money: History, Systems, and Inflation" »

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" »

Market Size: Understanding Economic Dimensions and Demand

Market Definition: The set of companies competing to provide the same or equivalent goods or services.

The economic size of a market is a key concept for understanding the situation and dynamics of an economic space. It refers to the volume of buying power within that economy. Thus, it is closely related to the application and its components. The magnitude of demand is a basic signal that firms face regarding their production opportunities and future plans, aimed at profitable buyer profiles and movements. Any process of economic growth in a territory is driven from two sources: production and demand.

Variations in the components or variables that make up the economic size of demand drive... Continue reading "Understanding Market Dimensions and Economic Demand" »

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" »

The Essence of Money: Functions and Economic Impact

Money stands as one of humankind's most significant inventions. Historically, to fulfill our needs, we engaged in exchanges. Primitive societies relied on barter, the direct mutual exchange of goods and services. However, this method led to excessive time loss and severely limited the scope of transactions. Money emerged as a simple and effective solution to this problem.

From Barter to Modern Currency

When considering money from a historical perspective, we often recall gold, silver, or bronze coins, such as those minted by the Roman Republic in the first century BC. Yet, long before (and long after), diverse cultures worldwide utilized various other goods as units of exchange, including salt,... Continue reading "Understanding Money: Functions, History, and Economic Impact" »

Corporate Culture

Corporate culture identifies how a company behaves and adapts to change. It's a style of thinking, living, and acting, projecting the corporate image externally.

Corporate image is how a company is perceived. Through this, users recognize the image, the products, and the company's character and values. It's the image personality pattern. This image includes:

• Logo
• Style Guide
• Design and Decoration
• Company Uniforms

Marketing

Marketing is the set of activities a company performs to satisfy consumer needs, always considering the financial aspect.

Market Study

A market study is a research process to obtain informed data about factors that affect the company. These variables are:

• Controllable non-competition environment (economic, political,