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

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" »

Media and Advertising Forms

Advertising is categorized into two main forms:

• Conventional Advertising Forms

  Includes print, radio, television, cinema, and outdoor advertising.

• Unconventional Advertising Forms

  Includes direct mail (mail shots, mailings, telephone).

Distribution Channels: Wholesalers and Retailers

Wholesalers

Wholesalers sell to other wholesalers, retailers, or manufacturers. Those closest to the producers are the wholesalers of origin. Destination and settler wholesalers act closer to the end buyers, such as those involved in central markets.

Retailers

Retailers sell to the ultimate purchaser and sometimes to other retailers. Retail outlets can be classified in several ways:

• Classification by Product Nature

  Examples include greengrocers,

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,

Orthodoxy

Under pressure from the IMF, Belaúnde was forced to reduce the budget, increase public utility rates, and devalue the national currency, the sol. Thus, the currency was worth less, and more had to be spent to import a product. The IMF measures resulted in a severe recession (contraction of demand), which impacted the citizens' finances. The poorer citizen consumes less and, as they consume less, pays less tax. In 1984, the Belaúnde government fell into arrears with the payment of its external debt.

Heterodox Program

The payment of external debt was limited to 10% of Peruvian exports. A new currency, the inti, was introduced, replacing the devalued sol. Basic prices, wages, and the exchange rate on the dollar were frozen. By avoiding

The International Business Environment

Introduction to the Global Business Landscape

A New Competitive Landscape

• Less clear sectoral barriers.
• Differences between industries and services are less precise (making sector classification difficult).
• Advances in logistics, computer design, and communications.
• Opening of global markets.

Two Key Determinants

• Globalization.
• Balancing Technology and Information Communication Technology (ICT).

Consequences of the New Environment

• Strong increase in competition: Presents both threats and opportunities.
• Differences in the cost of inputs, leading to relocation and redesign of production processes.
• Rise of multinational enterprises (MNEs), including smaller firms, not just large corporations.
• Mergers and acquisitions (

Fundamentals of Market Economics

Core Economic Definitions

Market

The means by which individuals or groups wishing to acquire a particular good or service connect with those who wish to sell it.

Barter

The direct exchange of goods and services without the intervention of money.

Money

A medium of exchange and legal tender, generally accepted by society.

Price

The value of a good or service specified in monetary units.

The Three Pillars of the Market

The functioning of the market rests upon three essential elements:

• The Bidders (Sellers/Suppliers)
• The Demanders (Buyers/Consumers)
• Prices

Requirements for a Functioning Market

For a market system to operate effectively, several requirements must be met:

• The existence of "free markets."
• Private property rights over