Key Economic and Political Terms of the Early 20th Century
Key Economic Terms
- Inflation: A general rise in prices due to an increase in the amount of money in circulation and uncontrolled emissions, often seen in warring countries. This leads to the depreciation of money.
- Gold Standard: An international monetary system in force until the 1930s. It provided that the currencies of all countries belonging to this system were exchangeable for a set amount of gold.
- Recession: A period of economic decline in a country, during which the value of money decreases.
- Fordism:
Understanding Mergers and Acquisitions: Types and Purposes
Mergers and Acquisitions: An Introduction
Mergers and acquisitions, or M&A for short, involve the process of combining two companies into one. The goal of combining two or more businesses is to try and achieve synergy – where the whole (new company) is greater than the sum of its parts (the former two separate entities). (A + B) > (A + B)
The two processes are different: A merger occurs when two separate entities combine forces to create a new, joint organization. Meanwhile, an acquisition
Read MoreInternational Trade Models and Their Implications
Theories that will be considered are:
- The Heckscher-Ohlin model of trade
- An economy of scale model of trade
- A product differentiation model of trade
- A transportation cost model of trade
- An environmental standards model of trade
The Heckscher-Ohlin Theory
The Heckscher-Ohlin theory is based on two subsidiary theorems:
- The H-O nation will export the commodity whose production requires the intensive use of the nation’s relatively abundant, and therefore cheap, factor and import the commodity whose production
Key Economic Concepts: GDP, GNP, Market Structures, Pricing
Key Economic Indicators
a) Gross Domestic Product (GDP)
Gross Domestic Product (GDP) is a measure of the total value of all goods and services produced within a country’s borders during a specific time period, typically a year. It represents the economic output of a nation and is commonly used as an indicator of the country’s overall economic health and size. GDP takes into account the value of final goods and services produced in various sectors of the economy, including consumption, investment,
Read MoreIntegration and Supplier Relationships in Purchasing
What is Integration?
Integration is the process of bringing together different groups, functions, or organizations to work together to achieve organizational goals.
Internal Integration in Purchasing
- Operations: Material requirements, performance feedback.
- Quality Assurance: Supplier evaluation, supplier development.
- Engineering: Technology used.
- Accounting & Finance: Cost reduction, buying decisions, budget.
- Legal & Safety: Intellectual property, safety in the workplace.
- Marketing: Marketing agencies,
Investment Strategies: Bonds, Stocks, and Short-Term Financing
Bonds
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How do I return the invested capital?
- Amortization of Capital: The total or partial cancellation of the debt that the bond issuer owes to the investor.
- Revenue Payment: Relates to the interest paid on the bonds, known as coupons.
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What risks are associated with bonds?
- Price Risk: Buying the bond at one price and selling it when the price is lower.
- Inflation Risk: The interest does not cover inflation.
- Liquidity Risk: When you want to sell the bond, no one wants to buy it.
- Default Risk: Failure