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

General Tendering Procedures

General Tenders represent a formal procedure for selecting suppliers. Any registered supplier may participate, provided they comply with the specific conditions associated with each selection process. In this process, pre-selection acts, the receipt of bids, and the public opening of economic bids are critical steps leading to the final decision.

Conditions for General Tenders

A purchase is made via general tenders if the purchase request meets any of the following conditions:

• For the purchase of goods or contracting of services with an estimated value exceeding €60,000.
• For construction works with an estimated value exceeding €180,000.

The Bids Commission

Commission Purpose and Structure

The Bids Commission is a committee... Continue reading "Optimizing Procurement: Tendering and Supplier Selection" »

Operations of Banks

1. Collection

Receiving deposits and current account contracts.

• a. Overnight Deposits

  The bank receives money, and the owner can withdraw without any restriction.

• b. Current Accounts

  A contract where the bank pays for funds from the account of third parties the account holder has available.

• c. Collection Period

  Similar to deposits but with different terms and conditions for termination.

2. Loans

Financial resources that are taken up by banks to provide loans through mutual use of natural and legal persons.

• a. Simple Credits

  Where the bank, through mutual agreement, gives money to individuals.

• b. Revolving Credits on Current Account

  If the customer's account is insufficient to pay, the bank provides a loan of money.

• c. Issuance of Credit

Theories of the Firm

Business economics studies the existence of firms by examining how agents decide to use their scarce resources.

In a market-regulated pricing system, an agent can buy or sell at a price equilibrium. If the market worked efficiently, the existence of firms might seem unnecessary. However, companies exist because the market doesn't always function perfectly.

There are four major areas in the theories of the firm: transaction cost theory, agency theory, strategic management, and business organizational cooperation.

Theory of the Firm: A Basic Production Unit

The theory of the firm views the company as the basic production unit, aiming to maximize profit. It utilizes productive factors and sources of supply of goods and services.... Continue reading "Understanding Theories of the Firm: A Comprehensive Analysis" »

Factors of Goods and Services

Production Costs

These depend on the provision of factors of production and the technology used, which have a decisive influence on the selling prices of various goods and services.

Application in International Trade

This fosters international trade, as, in practice, it is very difficult for a single country to produce everything necessary to meet the preferences or tastes of its inhabitants.

Customs Territory Defined

A customs territory is a geographical area with free circulation of goods, and it does not necessarily coincide with the political boundaries of a country.

Theory of Comparative Advantage

According to this theory, countries seek to specialize in the production of goods and services they can exchange more... Continue reading "Key Concepts in International Trade & Economics" »

Fundamentals of Production and Economic Efficiency

Core Economic Definitions

The Firm (Company)

A firm is dedicated to producing goods and services. The main reasons for establishing companies include: production control, the provision of funds, and reduced costs. Extraordinary profit attracts businesses to the market, while normal profit does not attract new businesses.

The Plant

A plant is the physical and organizational structure designed for the production of goods or services (e.g., a warehouse or a workshop).

Company: Comprehensive Organization

A complete organization that includes the various aspects of productive activity: planning, administration, production, and sale.

Industry Definition

An industry is the set of firms that produce the same... Continue reading "Production Fundamentals: Efficiency, Productivity, and Market Supply" »

Factors of World Economic Growth: 1945-2007

The second half of the twentieth century (1950-2000) witnessed unprecedented economic and population growth, improving living standards globally. World population more than doubled, rising from 2.5 billion in 1950 to 6 billion in 2000. Production increased over sevenfold, leading to a near tripling of per capita income, despite the population surge. This was achieved with reduced working hours due to significant productivity improvements. Individuals enjoyed more goods, leisure time, better health, and education. However, inequality, poverty, and hunger persisted.

The Golden Age (1950-1973)

This period, also known as the War Boom or Trente Glorieuses, was characterized by stable, regular, and intensive... Continue reading "Global Economic Growth: 1945-2008" »

The Formation of the Corporation

France

French corporations were smaller compared to those in the U.S., England, and Germany. They were often family-dominated and had a close relationship between management and ownership. Examples include Renault cars and Michelin rubber. These corporations featured simple management structures, strong organizational skills in production, but weaker distribution capabilities.

Factors Limiting Concentration:

• Small market size
• Existence of a dense distribution network
• Industry expertise focused on quality goods

Forms of Cooperation:

• Restrictive sales promotion through specific organizations
• Innovation through holding groups of companies that controlled legal and stock exchange matters
• Mergers, which emerged in the early

Understanding Business Structures in Spain

Sole Proprietorship (Autónomo)

• Single Member: Operated by one individual.
• No Minimum Capital: Does not require a specific initial capital contribution.
• Income Tax: Subject to personal income tax.
• Liability: Unlimited personal liability.
• Social Security: Generally registered under the self-employed (Autónomo) social security scheme.

Community of Goods (Comunidad de Bienes - CB)

• Minimum 2 Partners: Formed by at least two individuals.
• No Minimum Capital: Does not require a specific initial capital contribution.
• Income Tax: Partners are subject to personal income tax, proportional to their share.
• Liability: Partners have unlimited personal liability.

Civil Society (Sociedad Civil - SC)

• Minimum 2 Members: Requires

Factoring entities are financial operations, with or without the right of recourse and its maturity. Commercial credits are generated against their clients (invoices, receipts, bills of exchange, etc.). The factoring entity is in charge of putting these credits into circulation, collecting them, accounting for them preferentially, and establishing the form and period of effect with client meetings, assuming the risk of the holder's insolvency.

Contract Elements

Personal Elements

1. Factoring entity: Analyzes the solvency of clients and, once accepted for the assignment, performs a function of 1% of the determined credit for each client. It assumes the risk of insolvency of the assigned credit and manages its collection in exchange for a commission

In the short term, some companies can convert fixed or variable costs to fixed costs. Generally, fixed costs, such as rent for premises, are independent of the level of production. Variable costs are proportional to the volume produced.

Types of Costs

• Direct Costs: These can be directly related to the production of a product or a specific department.
• Indirect Costs: These relate to multiple departments or products, making direct allocation difficult.

Productivity

Productivity is the relationship between the quantity of output produced and the quantity of resources used to achieve that production.

Gantt Chart

A Gantt chart is a visual tool where the horizontal axis represents the time needed to complete a task, and the vertical axis lists the activities... Continue reading "Business Operations: Costs, Productivity, and Marketing" »