Demographic & Economic Fundamentals Explained

Population Dynamics & Demographics

As populations evolve, several key demographic factors come into play:

• Birth Rate: The number of live births occurring in a population.
• Fertility Rate: An estimation of the number of children a woman will have in her lifetime.
• Mortality Rate: The number of deaths that occur in a population.
• Infant Mortality: Records the number of children who die before their first year of life.
• Natural Population Growth: Occurs when the birth rate exceeds the death rate in a population.

Life Expectancy & Population Age

Life expectancy in most underdeveloped countries is typically lower than in developed countries, often leading to a younger population structure.

Understanding Migrations

Migrations are the displacement of a population, involving a change of place of residence. This term refers to the transfer of people from one area to another.

The majority of migrations are driven by economic reasons, though some are politically motivated.

Types of Migration

• Forced: Involuntary movements, often due to conflict, persecution, or natural disasters.
• Voluntary: Movements made by choice, for personal or economic reasons.
• Temporary: For a fixed period, such as for study or work.
• Permanent: Individuals do not return to their place of origin.
• Internal (Domestic or National): Takes place within the same country.
• External (International): Occurs across national borders.

Understanding Families

Families can be formed by one or more persons, representing a fundamental social unit.

Business & Companies

Companies are entities engaged in producing goods and services to obtain economic benefits.

Types of Companies

• Public: Owned or controlled by the state.
• Private: Owned by an individual or private entity.

Company Size Classifications

• Micro-enterprises: Typically have fewer than three workers.
• Small enterprises: Employ up to 50 workers.
• Medium-sized enterprises: Employ up to 250 workers.
• Large companies: Employ more than 250 workers.

The Concept of Work

Work is a human activity, both physical and intellectual, necessary to produce goods and services.

Types of Work Contracts

• Fixed-Term Contract: Has a defined duration.
• Temporary Contract: Has a determined duration, often for specific projects or seasonal needs.

Worker & Management Associations

Management and Syndical Associations (Unions) are large organizations created to defend the interests of workers or management.

Natural Resources

Natural resources are the many resources offered by nature that are used in production processes.

Understanding Capital

Capital refers to all resources used to produce goods and services.

Types of Capital

• Physical Capital: Tangible assets such as buildings, machinery, and equipment.
• Human Capital: Refers to the training, qualifications, and experience of workers.
• Financial Capital: The money needed to start or operate a company.

The Role of Technology

Technology is the set of procedures and tools used to produce goods and services.

Production Methods

• Manual Production: Relies on human power and the use of hand tools.
• Mechanized Production: Machines provide the force, but workers operate and control them.
• Automated Production (Technological): Machines provide both the force and control the tools, with minimal human intervention.

Globalization

Globalization refers to the increasing economic, social, and cultural interconnectedness between different parts of the world.