Notes, abstracts, papers, exams and problems of Economy

Economy

Definition: Economics is a social science that studies the processes of production, exchange, distribution, and consumption of goods and services.

Classes of Goods

Free Goods: These goods are freely available in nature and have no economic value. They are not owned by anyone in particular, but rather by everyone.

Economic Goods: These goods are the result of human effort and technology, and therefore have economic value.

Unemployment

Definition: Unemployment occurs when individuals in the active population are not employed but are actively seeking work.

The Company

Definition: A company is a production unit responsible for gathering, processing, and distributing goods and services necessary for human needs.

Production Factors

Definition: Production... Continue reading "Economics: A Comprehensive Overview" »

Economic Activity

Economic activity encompasses all human endeavors to meet their needs. This involves:

Goods Production

Combining natural resources, technology, and labor to create goods and services for consumption.

Types of Goods

• Consumer Goods: Directly satisfy consumer needs.
• Produced Goods: Machines and tools used to produce other goods.

Marketing

Distribution and sales involve storage, transportation, and selling.

Sales Types

• Wholesale: Buying and selling large quantities to other traders.
• Retail: Buying from wholesalers and selling smaller quantities to the public.

Consumption

The use of goods and services by individuals.

Factors of Production

The essential elements for producing goods and services:

Natural Resources

Resources found in nature, transformed... Continue reading "Economics: Production, Consumption, and Market Dynamics" »

Business Concept

A company is a collection of items, organized and coordinated by management, designed to meet objectives while operating under conditions of risk.

Location Factors

• Market Demand: Consider the local interest in your product.
• Raw Materials: Assess material quality, cost, and availability.
• Labor Market: Evaluate potential employees, expertise, labor costs, and legal considerations.
• Infrastructure and Transport: Consider transport accessibility and connections with other businesses.
• Utilities: Evaluate the availability and cost of essential utilities like electricity, water, and telephone lines.
• Construction and Land Costs: Remember that prices vary by location.
• Legislation: Understand relevant tax, commercial, and social regulations.
• Investment

Key Business Concepts

Production Process: The organized, logical steps workshops must follow to achieve the desired product.

Employment Contract: An agreement between a worker and a company where the worker commits to work under the employer's direction in exchange for wages.

Collective Agreement: A contract negotiated and formalized by employer and employee representatives to regulate working conditions for a specific period.

Warehouse Management (Stock Security): Maintaining a reserve amount in storage to cover potential damages or shortages.

Investment Spending: An entrepreneur's expenditure on goods that aid in producing other goods. These assets, such as machinery or tools, typically last more than a year. (Examples: location, machinery, tools,... Continue reading "Key Business Concepts: Production, Contracts, Finance" »

Risk Mitigation in Purchase/Sale Transactions

• Goods in Transit Insurance: Risk-based coverage for transport means, company, goods, packaging, etc.
• Default Risk Protection:
  • Assessment based on client risk and country.
  • Financial solutions like non-recourse factoring.
  • In Spain, collaboration with ECESB (Spanish export credit company).
• Non-Delivery Risk Mitigation for Paid Documentary Credits.
• Currency Exchange Risk Management.

Documentary Letter of Credit

• The Letter of Credit (L/C) offers the most secure payment method for exporters, albeit at a higher cost for importers.
• A bank, at the importer's request, commits to pay the exporter upon presentation of compliant documents.
• Assures importers of goods delivery as per payment and exporters of payment recovery.

Income and Wage Determination in Labor Markets

Income

Income: Total income received by owners of productive factors.

Income Distribution

Income Distribution: How income is distributed among the owners of factors in the form of productive wages. It is conditioned by wage differentials and the distribution of wealth.

Salary

Salary: The price of a job. The company hires workers, and their wages are lower than the value that has been produced.

Labor Demand

Labor demand by firms depends on: wages, productivity, and prices of goods produced.

• Wages: An increase in wages reduces the demand for labor because it is more expensive to hire.
• Productivity: Higher wages can be offset by greater productivity.
• Price: If the price of goods rises, business productivity

Understanding Employee Mobility, Rights, and Wages

Functional mobility occurs within a company when an employee's job changes, and they perform functions different from their usual tasks. Worker mobility between different occupational categories is possible if there are organizational reasons that warrant it and the time needed to overcome these causes.

An employer may change the distribution of work and the roles of workers, provided they have the necessary qualifications to perform the functions of the new job assigned to them. This mobility does not lead to a loss of occupational status, salary reduction, or impairment of their dignity.

Geographic mobility is caused by the relocation of a worker to another workplace in a different location,... Continue reading "Understanding Employee Mobility: Types, Rights, and Wages" »

Marketing Strategies and Distribution Channels

Discount Store Strategy: Buying large volumes at reduced margins to offer competitive prices.

Disjunctive Model: Consumers choose products that meet their primary needs, not necessarily all features.

Exclusive Distribution: Used by luxury manufacturers, limiting product availability to select stores, sometimes as part of a business partnership or investment.

Physical Distribution: The storage, handling, and movement of goods within an organization and their delivery to consumers.

Intensive Distribution: Making a product available in as many places as possible, primarily for frequently repurchased items.

Selective Distribution: Limiting product availability to a few stores, typically for specialty or... Continue reading "Business Strategies and Consumer Behavior" »

Market Segmentation in Financial Institutions

Segmentation in a financial institution can occur in response to different situations. For example, segments can be created for new entrepreneurs, youth, pensioners, or based on age, income level, workplace, or social groups, including Small and Medium-sized Enterprises (SMEs).

Physical vs. Online Financial Institutions

Internet:

• Lower operating costs
• Access to new technologies
• Potential for cost savings and improved quality of proposals
• Drawback: Lack of personal contact, leading to a perception of coldness

Physical Entities:

• Higher operating costs
• Proposals may be of lower quality compared to online offerings
• Advantage: Direct customer interaction fosters trust and reliability

Types of Operations in Financial

1. Stages of International Market Research

1. Pre-selection of Favorable Markets
2. In-Depth Market Research in Target Country
3. Investment Research

2. Environments to Analyze in Initial Market Research

Economic, cultural, legal, technological, and political environments.

3. Economic Environment Analysis: GDP and Per Capita Income

Analysis of key macroeconomic figures.

GDP: Measures the value of final goods and services produced in a country, indicating its wealth and purchasing power.

Per Capita Income: Directly determines the market's purchasing power.

4. Main Trade Barriers

• Licenses: Required for importing/exporting specific products in certain countries.
• Tariffs: Taxes on imported products.
• Quotas: Limits on the quantity or value of imported products.
• Taxes: