Understanding Import Processes and Customs Procedures
1. Defining Import
Import is the legal entry of foreign goods through ports, airports, or border crossing points for domestic use and consumption.
2. Local Income
This means that goods should be admitted to places authorized and empowered by the National Customs Service (SNA).
3. Foreign Goods
Foreign goods are those manufactured or produced outside the country.
4. Understanding Domestic Consumption
The goods must be intended for use and consumption by the inhabitants of the country.
5. Formalization of
Read MoreUnderstanding Economic Policies and Fiscal Instruments
Economic Policy
Economic policy refers to state intervention to achieve objectives related to economic production, employment, and prices. It uses variables such as public spending, taxes, and the cost of money.
A. Objectives
- Sustainable economic growth (increasing production of goods and services) – GDP, GNP.
- Full employment, economic activity, and reduced unemployment.
- Price stability (price control) – CPI, inflation rate (this improves the welfare of citizens).
B. Media
- Direct: Organizations that produce
Key Financial Concepts and Inventory Management
Reorder Point
The reorder point is the inventory level that determines when an order must be placed.
Leverage
Leverage is defined as the company’s use of fixed operational and financial costs. It represents a measure of operational risk and return. It refers to the multiplier effect that fixed costs produce on profits. Combined leverage occurs when a company employs both types of leverage to increase income for the owners.
Financial Leverage
Financial leverage is derived from using debt to finance an
Read MoreUnderstanding Key Economic Concepts: Taxes, Public Goods, and Costs
1. Externalities: Examples
Externalities are external effects that impact the production or consumption of goods by third parties and are not transmitted via prices. They can be positive or negative:
- Positive externalities: Examples include health and education.
- Negative externalities: For instance, when someone smokes, others have to endure the smoke without smoking.
When negative externalities exist, the social cost is higher than the private cost of the activity (production or consumption).
2. Public
Read MoreUnderstanding Production: Factors, Processes, and Profitability
1. Defining Production: Different Perspectives
From an economic point of view: Production is the development of products (goods and services) from basic productive resources (natural resources, labor, capital) by companies (economic units of production) in order to be purchased or consumed by families.
From a technical perspective: Production is a combination of several elements: labor, raw materials, machinery, energy, technical direction, etc. (production factors), which follow a series of procedures
Read MoreKey Concepts in Economics: Homework Assignment
ECON 1312 Homework Assignment #1
- What do economists mean when they discuss “scarcity”?
Scarcity refers to the need for factors of production such as capital, land, labor, and entrepreneurship, in order to establish a new business.
Define Economics and Describe its Branches of Study
Economics is the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices.
Economics
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