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

Business Ethics and Corruption in Spain

Introduction

This study analyzes business corruption in Spain, focusing on its origins and development. This report highlights two key dimensions: the causes and the effects of business corruption within the country.

Causes of Business Corruption

The primary cause of business corruption stemmed from exploiting the pre-crisis situation. The price of housing was well above its real value, a direct consequence of the inmobiliaria bubble. Furthermore, banks were granting high-risk mortgages without sufficient endorsement, famously known as subprime mortgages. While the risk of non-payment for these loans was exceptionally high, the profitability banks obtained was equally significant.

Another ethically incorrect... Continue reading "Business Corruption in Spain: Causes and Consequences" »

Executive Summary

This policy paper analyzes Venezuela's recent financial crisis and provides recommendations to the Venezuelan government regarding exchange rate policy.

Venezuela's Economic Crisis

Venezuela has experienced a rapid economic downturn since the implementation of socialist economic policies in 1999. The country's heavy dependence on oil exports to manage the economy has stifled private investment and created an over-reliance on imports for basic goods. The drop in global oil prices since 2013 has plunged Venezuela into hyperinflation, which exceeded 1.3 million percent in 2018. The nation's political turmoil has been exacerbated by a lack of economic development, corruption, and the devaluation of its currency, the Venezuelan Bolivar.... Continue reading "Venezuela's Financial Crisis: Exchange Rate Solutions" »

Chapter 1: Introduction to Economics

Economics is the study of how we choose to use resources to produce goods and services. There are four factors of production:

• Land: Natural resources, such as grass
• Labor: Human effort, such as work
• Capital: Tools and machinery used in production
• Entrepreneurship: The ability to combine the other factors of production to create goods and services

When making economic decisions, we consider marginal benefit (MB) and marginal cost (MC). If:

• MB > MC: It is beneficial to proceed
• MB = MC: This is the break-even point
• MB < MC: It is not beneficial to proceed

Economic theory simplifies economic reality, while economic policy involves remedial actions taken to solve economic problems. Economic goals include economic... Continue reading "Fundamentals of Economic Theory and Practice" »

Key Changes in Vocabulary

• Income (paragraph 1) Earnings
• Consultants (paragraph 4) Guidance Counselors
• Persist (paragraph 6) Remained
• Considerable (paragraph 7) Significant
• Enhance (paragraph 8) Complement Each Other
• Well Informed (paragraph 11) Fully Aware
• Present (paragraph 13) Current
• Results (paragraph 15) Outcomes
• Distant (paragraph 17) Remote
• Recognition (paragraph 18) Awareness

Key Phrases

• Deliberate B
• The Advantages D
• People Have A
• The Effort B
• Expanding Cities D
• Some Doubt A
• Beneath B
• Residents D
• Attempts C
• Greater Consideration C

Frequently Asked Questions

1. How will jobs change due to the fourth industrial revolution?

The fourth industrial revolution is expected to lead to the complete loss of some jobs, particularly those involving repetitive, production-... Continue reading "Impact of the Fourth Industrial Revolution on Jobs and Careers" »

Competitive Environment Analysis

The Competitive Environment significantly affects a business within its industry. We use Porter’s Five Forces model for analysis.

The Five Forces Components

• Substitutes: Products or services that can replace yours. Fewer substitutes are better.
• Complements (Comps): Potential opportunities that enhance your product (e.g., ink for a printer).
• Rivals (Competitors): You want few rivals and high market demand.
• New Entrants: Undesirable; they are kept out via barriers to entry.
• Customers: The more customers you have, the less bargaining power each individual customer possesses. This applies to both B2B and B2C models.
• Suppliers: The more suppliers available, the better the terms and deals you can secure.

Adapting to Environmental

International Trade and Export Marketing

Key Concepts in Exporting

31) The only marketing mix element applicable solely in export selling is Place.

32) Which of the following is not true about personal selling? E) To have a face-to-face meeting is not a requirement.

33) Export marketing requires all of the following except: E) Reaching retail customers.

34) The possible arrangements of responsibilities for handling exports include all except: E) Through an export department of an embassy.

35) Research has shown that exporting firms tend to: C) Receive unsolicited export orders.

Global Trade Dynamics

36) According to recent data on percent market share, which country is a dominant player in international trade? B) China

37) Governments commonly use activities... Continue reading "International Trade and Export Marketing: A Comprehensive Guide" »

International Capital Market Drivers

The volume of debt, equity, and currencies traded internationally has increased dramatically.

Key Drivers

1. Information Technology: This is the lifeblood of every nation's capital market because investors require information corresponding to risk levels. (Example: Big Data)
2. Deregulation: Instrumental in the expansion of the international capital market.
3. Financial Instruments: Greater competition in the financial industry is creating the need to develop innovative financial instruments. (Example: Securitization, Mortgage Loan)

Key Market Institutions

1. Interbank Market

Market in which the world's largest banks exchange currencies at spot and forward rates.

• Clearing Mechanisms: Important element of the interbank market.

The Urgent Need for Climate Action

The effects of climate change are a pressing concern for society. While much has been done to mitigate its impact, there is still much more to be done. In recent years, there has been a growing awareness of the need to take action to combat climate change. However, more action needs to be taken, and it must be taken quickly.

It is suggested that more measures be implemented to reduce carbon emissions and to increase the use of renewable energy sources. The government should also encourage people to make lifestyle changes to reduce their carbon footprint. It is hoped that, in the future, the effects of climate change can be minimized.

If more action were taken, the future would be brighter. However, it is not... Continue reading "The Urgent Need for Climate Action and the Impact of Technology on Jobs" »

Essential Financial and Banking Vocabulary

• A.T.M.: Automated Teller Machine; cash dispenser.
• Banknote: A piece of paper money.
• Bitcoin: Digital currency which allows payments to be sent from one party to another without going through a financial institution.
• Borrow: To obtain money which must be returned or reimbursed.
• Broke (be broke): To have no money.
• Budget: The amount of money available or needed for a specific use.
• Cash: Coins or banknotes (not cheques); actual money paid, not credit.
• Cash dispenser: An automatic machine from which a bank customer can withdraw money.
• Cashier: A person dealing with cash transactions in a bank, shop, etc.
• Cheque (US: check): A written order, on a specially printed form, to pay the stated amount from one's bank account.

Business Financing (Microcredits) Causes and Effects

Introduction

The goal of the present study is to analyze microcredits, their origin and their development. This report shows two dimensions. Firstly, the origin of microcredits and secondly, the effects in developed countries and in developing countries.

Origin of Microcredits

Microcredits are a kind of loan addressed to a part of the society who did not have enough means to pay back a loan with a higher amount, a fixed employment or a verifiable credit history. In addition, it has also served to finance entrepreneurs. The roots of this type of loan were originated in the 60’s by Muhamad Yunnus. The main cause of this creation was the financing of this type of people to acquire their houses,... Continue reading "Microcredits and China's Economic Expansion" »