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

Economic Objectives of Business

Business is an economic activity, and therefore, its primary purpose is to achieve economic results. The key economic objectives of business are as follows:

• Earning Profit

  Profit signifies the excess of income over expenditure. The foremost and prime objective of every businessman is to earn profit. A business cannot survive without earning profit. It is not only essential for survival but also crucial for the growth and expansion of the business.

• Market Standing & Customer Creation

  A business can survive for a longer period only if it can capture a significant market share and establish strong market standing. This is possible only when the business provides goods and services that satisfy the needs and wants

International Business Terminology

Certificate of Origin

A certificate of origin (CO) is a document that certifies the country of origin of goods being shipped. It is required by customs authorities of the importing country.

Intellectual Property

Intellectual property (IP) refers to legal rights that result from intellectual activity in various fields. Common forms of IP include patents, trademarks, copyrights, and trade secrets.

Transfer of Technology

The sharing of scientific information, technology, and manufacturing know-how between firms, universities, or other institutions is known as the transfer of technology.

Franchising

In franchising, a franchisee is allowed to use a trade name or trademark in offering goods or services to the public in... Continue reading "International Business: Key Concepts and Terminology" »

1) Which of the following is a tax?

I. A 1% special sales tax for funding local Road construction.

II. A fee paid to the state for a license To practice as an attorney.

III. An income tax imposed by Philadelphia On persons working within the city limits.

IV. A special property assessment for Installing a new water system in the taxpayer's neighborhood.

E) I and III are correct.

2) Marc, a single taxpayer, earns $60,000 In taxable income and $5,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. Tax rate schedule for year 2018, how much federal tax will he owe? (Use tax rate schedule) C) $9,139.50

3) Marc, a single taxpayer, earns $60,000 In taxable income and $5,000 in interest from an investment in city of Birmingham... Continue reading "I is correct ii is correct" »

Consequences of Eliminating Export Tax on Cashew Nuts

By eliminating the export tax on raw cashew nuts, it was believed that removing trade barriers would alleviate poverty by increasing the price farmers would receive. Several industrialists who purchased factories opposed the elimination of the export taxes on cashew nuts. The advice failed because the World Bank did not completely analyze the consequences of lifting the export tax barrier. They applied economic theory without considering if the theory would be pertinent in light of the development history of Mozambique. Some consequences were that workers and farmers lost their jobs.

Capital According to De Soto

1. Describe the definition of capital according to De Soto. Why in the non-Western

Calculating the Degree of Openness

To calculate the degree of openness, we use the formula: (X + M) / GDP.

Benefits of International Trade

• Peace through commerce: Mitigation of economic conflicts (e.g., USA vs. China) and increased international agreements.
• Specialization: Achievement of economies of scale.
• Consumer Choice: Greater variety of goods and services.
• Infrastructure: Enhanced global mobility and connectivity.

Disadvantages of Trade

• Dependency: Reliance on foreign markets.
• Global Effects: Systemic risks and externalities.
• Inequality: Disparities at both international and national levels.

Factors Limiting Gains from Trade

• Information Asymmetry: Lack of transparent market data.
• Transportation Challenges: Impact of weather and the need for technological

Core Commercial Service Logistics Parameters

From a logistics perspective, commercial services fundamentally rely on three key parameters:

• Merchandise availability for immediate delivery to the client.
• Quick merchandise delivery.
• Reliability of the promised delivery date to the customer.

Warehouse Definition and Challenges

A warehouse is a "planned space for the efficient location and handling of materials and merchandise." Warehouses aim to solve two primary problems:

• Correct layout design.
• Efficient handling of operational processes (product inputs and outputs).

Warehouse Operational Processes

A warehouse can be considered a production center where a series of processes are carried out:

• Receiving merchandise.
• Product adaptation (packing, labeling, etc.

International Monetary Fund (IMF)

The IMF is an organization created to control the fixed exchange rate established in Bretton Woods.

The IMF's primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other. The Fund's mandate was updated in 2012 to include all macroeconomic and financial sector issues that bear on global... Continue reading "International Financial Institutions: IMF, OECD, WTO" »

Chapter 2

Paragraph Structure:

• Topic sentence: states the topic and introduces the main idea

• Body sentences: support the topic sentence

• Concluding sentence: restates the main idea and ends the paragraph

Steps to develop:

Narrow the topic: make it more specific. You can use brainstorming, questioning, or freewriting.

Topic sentence: it introduces the topic to the paragraph, it states the paragraph’s controlling idea, it is the most general sentence in the paragraph, and it is followed by other sentences that provide supporting facts and examples.

Controlling idea: writer’s opinion or attitude

Supporting ideas: facts and examples that provide the reader with interesting information about the subject matter

You can organize your ideas in:

Time order:... Continue reading "Effective Paragraph Structure and Revision Techniques" »

Multiple Choice Questions

1. The optimal use of a variable input occurs when the marginal revenue product equals marginal factor cost.

2. In which range of market share is a firm typically considered dominant? 30% to 85%

3. Which of the following is usually not a source of sustainable competitive advantage? A firm may have a large marketing budget.

4. Before launching a new type of product, what should a company do? Sensitivity analysis

5. The type of economic indicator used to predict future economic activity is a leading indicator.

6. Which of the following is not part of the four-step forecasting process? Developing internal controls

7. In which model is the new forecast equal to the old forecast plus some proportion of the last observed forecast error? First-order

Understanding Economic Activities

3S: A group of economic activities that consist of offering services.

• Public services (offered by the state): Healthcare, Education
• Distribution services (change the position of something): Transport, Telecommunications, Trade
• Business services (company to company): Repairs, Installations, Professional services
• Customer services (company to people): Repairs, Installations, Personal services, Trade, Travels, Tourism

Quaternary Sector: A group of economic activities classified within the 3S. Commonly, services require a lot of training and formation. Includes mostly scientific and technological research, such as Biomedicine.

TransNet: A combination of nodes and pathways.

• Nodes (N): Points of departure and arrival for