Key Concepts in Economics and Finance
Divisions of Economics
Economics is broadly divided into positive and normative economics.
Economic Theory
Economic theory is a science that studies the influence of money in the economic system. It explains facts through:
- Microeconomic Theory: Such as consumer theory.
- Macroeconomic Theory: The study of economic aggregates, units, companies, GDP (PBI), Price Index (Pc).
Economic Policy
Economic policy relates to the decision-making process involving the monetary authority (BCR) and the set of actions the
Read MoreEconomic Integration Principles and EU Framework
Economic Integration: Concept and Objectives
Economic integration is the combination of several entities into a larger territorial unit. This implies the elimination of economic borders between countries. An economic border is any obstacle which limits the mobility of goods, services, and production factors between countries. Integration processes are articulated through agreements between different countries that normally include selective trade liberalization formulas.
Economic integration includes:
Read MoreLegal Basis of Brazil’s SUS
Constitution of 1988
Article 196
Health is everyone’s right and a duty of the State, guaranteed through social and economic policies aimed at reducing the risk of diseases and other health problems, and ensuring universal and equal access to programs and services for its promotion, protection, and recovery.
Legal and Regulatory Foundations
- Organic Health Law No. 8080 of 09/19/1990
- Law No. 8142 of 12/28/1990
- Basic Operational Norms (NOB) established in 1991, 1992, 1993, and 1996
- Constitutional Amendment
Goods Production Process
Products and Services
The production process results in new products and a network of complementary products. Using some products requires installed facilities, infrastructure, and support services. The availability of various technology products and associated services greatly influences our lifestyle.
Production Companies
The elaboration of different types and varieties of technological products is carried out by manufacturing administrations. Multinational companies have commercial offices and production
Read MoreKey Financial Products and Banking Institutions Explained
Assets and Liabilities
Includes cash, bank deposits, loans, stocks, bonds.
Fixed Income Products
Large companies seeking loans may issue debt securities (like bonds) to many investors. These investors receive agreed-upon interest payments and become lenders by acquiring these securities. If investors need their funds before the maturity date, they can sell the securities in the secondary market.
Equity Products
Shares of a company are equity securities because their owners receive dividends based on
Read MoreSpanish Industrial Activity: Organizational Changes & Trends
Major Organizational Changes in Spanish Industry (1978-2008)
What are the major organizational changes and location shifts in Spanish industrial activity since the Third Technological Revolution (Industrial Revolution)? This analysis notes explanatory factors and trends.
Between 1978 and 2008, Spanish industrial production grew by 64% due to intense renewal of production processes and increasing workforce reduction. This has affected increased industry productivity. Today, industry contributes about
Read More