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

Why is marketing such an important function in most organizations?

Marketing is a vital business function necessary in nearly all industries, whether the organization operates as a for-profit or as a not-for-profit entity. For the for-profit organization, marketing is responsible for most tasks that bring revenue and, hopefully, profits. For the not-for-profit organization, marketing is responsible for attracting supporters or customers.

Market Research in Management Decisions

What part can market research play in management decisions on product/service design?

Market research is the planned, systematic collection of data designed to help management take decisions about each operation and to monitor the results of those decisions to understand... Continue reading "Essential Marketing Functions and Business Strategy" »

English Grammar: Conditionals

• Zero Conditional: Used for general truths and real situations. Structure: If/When + Present Simple, Present Simple. (Example: If you press this switch, the computer comes on).
• First Conditional: Used for likely situations. Structure: If + Present Simple, Will + Verb Infinitive. (Example: If I don’t get the job, I won’t move house).
• Second Conditional: Used for imaginary or unreal situations. Structure: If + Past Simple, Would/Could/Might + Verb Infinitive. (Example: If I were you, I wouldn’t apply for that job).

Essential Business and Financial Vocabulary

• Banking Operations: Set up a standing order, pay by card, deposit 100 in your account, enter your PIN, transfer money to another account, or withdraw 110 from

GNP/GDP 4 elements:

International Monetary Fund (IMF)

Original Aims and Purpose

The original aims of the IMF are to:

• Promote international monetary cooperation.
• Facilitate the expansion of balanced international trade.
• Promote exchange stability.
• Establish a multilateral system of payments.
• Make resources available (with adequate safeguards) to members experiencing balance of payments difficulties.

"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."

Key Activities and Functions

The IMF’s key function is to provide temporary financial assistance to members in balance of payments difficulties. The... Continue reading "International Monetary Fund and World Bank Roles" »

Developing Export Strategy

Companies develop this strategy when customers in other countries request their goods.

Step 1: Identify a Potential Market

A company should conduct market research and analyze the results. Example: ART BRZ

Step 2: Match Needs to Abilities

Determine whether the company can meet the needs of the market. Example: Air conditioning

Step 3: Initiate Meetings

Build trust and develop a cooperative environment among all parties. Example: Arizona Companies

Step 4: Commit Resources

Allocate the company's human, financial, and physical resources to the project.

Export/Import Financing

1. Open Account

Export/Import financing where an exporter ships merchandise and later bills the importer for its value. Example: MGT briefcase

2. Advance Payment

Export/... Continue reading "International Business Strategies: Exporting, Financing, and Entry Models" »

Inflation and Deflation

Inflation is an increase in prices, reducing purchasing power. It occurs when the price of goods and services rises faster than salaries. Consequently, demand falls, leading to reduced production and a decrease in GDP.

Deflation is when prices fall more than wages. This leads to increased demand, increased production, and a rise in GDP.

World Trade Dynamics

World Trade Without Restrictions

• Higher prices
• Fewer consumer choices

World Trade With Restrictions

• Protection of national defense and citizen health
• Protection against dumping. Dumping occurs when manufacturers export a product to another country at a price either below the price charged in its home market or below its cost of production.
• Potentially lower prices for consumers

Business Markets & B2B Buying Behavior

Understanding Business Markets

Business buyer behavior refers to the buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others.

Business buying process is the process where business buyers determine which products and services are needed to purchase, and then find, evaluate, and choose among alternative brands.

Market Structure & Demand

Business Decision Process Characteristics

• More complex
• More decision participants
• More professional purchasing effort
• Buyer and seller more dependent

Supplier development is the systematic development of networks of supplier-partners to ensure an appropriate and dependable... Continue reading "Business Markets & B2B Buying Behavior Explained" »

Fundamentals of Markets and Exchange

Defining Business and Market

A business is a specialized unit that coordinates the production of goods and services.

A market is a place where buyers and sellers meet to facilitate the exchange of products and services.

Key Elements of a Market

We identify three important elements in a market:

1. Sellers: Normally businesses, who produce products or services in order to sell them in exchange for money. They usually sell them to final customers, but also to other businesses.
2. Buyers: Normally families, although companies can also buy from other companies. Buyers acquire goods and services with money in order to satisfy their needs.
3. Products and Services: Goods, both tangible and intangible, that are exchanged between

launch/introduce/roll out a product ≠ withdraw a product

(BRAND) stretching/extension  awareness/recognition image  loyalty

ADS endorse a brand target an audience sponsor an event launch a campaign run a campaign place an ad run an ad attract/appeal to... Continue reading "Essential Business English Vocabulary and Terminology" »

WTO Agreements and Core Functions

The WTO agreements cover goods, services, and intellectual property. They manage these areas under the principles of liberalization—with permitted exceptions—to achieve lower customs tariffs and to keep services markets open.

Key WTO Responsibilities

• Handling Trade Disputes: The WTO’s procedure for resolving trade quarrels under the Dispute Settlement Understanding is vital for enforcing rules and ensuring smooth trade flows.
• Monitoring and Support: Monitoring national trade policies while providing technical assistance and training for developing countries.
• Institutional Cooperation: Collaborating with international institutions such as the IMF and the World Bank.

International Trade Theories

Absolute Advantage