Strategic Decision-Making: Relevant Costs & Revenues
Effective Decision-Making for Long-Term Success
Effective decision-making involves making choices that support a company’s long-term aims. These decisions should help create value, generate profit, and meet customer and employee needs. Achieving these goals requires combining financial and qualitative information. Modern companies also recognize that motivated and committed team members make the best decisions. Finally, improved accounting technologies provide ‘relevant’ financial data, saving time
Read MoreMarket Structures: Perfect and Imperfect Competition
Market Structures
The Market
The market is the physical or virtual space where buyers and sellers exchange goods and services. Markets can be categorized according to:
Geographical Area or Space
- Local
- Regional
- National
- Worldwide
Nature of Goods
- Agricultural products
- Industrial services
Freedom of Entry
- Open market: Open to all buyers and sellers.
- Closed market: Entry is limited.
Freedom to Change
- Free market: Price is determined by supply and demand.
- Intervened market: Authorities influence price and/or quantity.
Understanding Trade Unions: Types, Benefits, Structure
Trade Unions: Impact on Businesses and Employees
In smaller businesses, employees can often talk directly to their employer if they have any problems. However, in larger businesses that employ many people, this becomes extremely difficult. It is also challenging for the Human Resources department to make decisions (e.g., who will get a pay raise) when they have hundreds of employees. It becomes much easier if decisions are negotiated with a trade union, an employee association that represents them.
International Marketing: Political & Legal Factors
Market Characteristics and Consumer Behavior
Market characteristics are defined by variables such as population demographics, infrastructure, geographical features, and foreign economic involvement.
Population Size and Demographics
Population size reflects market potential and demand for widely appealing, affordable items. Marketers analyze population data by categorizing it to understand specific market characteristics. Key classifications may include household size, which encompasses all occupants
Open Economy Macroeconomics: Exercises and Solutions
Open Economy Macroeconomics Exercises
Exercise 1 (topic 6): Consider an open economy where the goods market is characterized by: C = 5 + 0.1 · (Y − T), I = 4 + 0.3 · Y, IM = 0.3 · Y · ε, X = 0.2 · Y* − 2 · ε. We also know the government sets a level of public spending and taxes equal to 8, the real exchange rate is 1.4, and foreign income is 1. Given this information, what is the value of autonomous spending in this economy?
The demand for domestic goods in this economy is: Z = C + I +
Read MoreEconomic Impact of WWI and the Roaring Twenties
Economic Consequences of the First World War
What were the immediate effects of the First World War on the economy?
The Great War had profoundly negative effects on the global economy:
- First, it weakened the European powers, adversely affecting the population and production, and causing the breakdown of international cooperation among the Allies. Almost one-tenth of European production infrastructure (machinery, factories, etc.) was devastated by the war.
- Second, the peace treaties signed after the