Key Questions and Answers in Economics
Question 1: What are the three central problems of an economy?
Answer: The three central problems of an economy are:
- What to produce
- How to produce
- For whom to produce
Question 2: Give two examples of micro and macro economy.
Answer: Two examples of micro economy are individual supply and individual demand, and two examples of macro economy are aggregate supply and aggregate demand.
Question 3: Define scarcity.
Answer: Scarcity refers to the deficit of resources as compared to the demand.
Question 4: A growth
Read MoreNestlé’s Strategic Analysis: Internal and External Factors
Internal Factors Evaluation Matrix – Nestlé
Strengths
- Strong Brand Recognition (Weight: 0.20, Rating: 4, Score: 0.80): Globally recognized, helping to maintain the customer base, driving loyalty and visibility.
- Wide Distribution Network (Weight: 0.15, Rating: 4, Score: 0.60): An expansive network reaches diverse customers in different regions.
- Research & Development Capabilities (Weight: 0.10, Rating: 4, Score: 0.40): Investment in innovation to stay competitive, with continuous product innovation.
Financial Functions and Business Viability in Startups
**Financial Function**
It is one of the basic functions of a company. It involves making decisions that will integrate the appropriate actions to achieve the means of payment (financing decision) and its use (investment decision). It is always directed to the objectives of the company. So, to solve this function, there will be two big decisions: choosing the productive assets to be acquired by the company (investment decision) and determining the sources of resources to invest, given the optimal
Read MoreCorporate Finance: Structure, Governance, and Valuation
Market-Based Versus Bank-Based Financial Systems
The financial system of the US and UK is market-based: the stock market and bond market are important for corporate finance. UK’s bank assets include bank loans for European corporations. The financial system of many other countries is bank-based. The financial system of Hong Kong is a hybrid.
US, UK, and Hong Kong Boards of Directors
- Directors (agents) are elected by shareholders (principals).
- The Board of Directors (BoD) consists of executive directors
International Freight Transport: Types, Regulations, and Logistics
International Freight Transport
International transport is the delivery of products for sale in a country other than the one they originate. The three components are: transportation infrastructure, transportation services, and the transactional environment.
Stages of Transport Operations
Stages of transport operations: static or preparation stage: it takes place when the physical protection of goods is carried out. Dynamic or movement stage: is when vehicles are used and it takes place during the itinerary.
Read MoreCommercial Premises and Retail Trade: Types and Evolution
Commercial Premises: A Classification
New commercial large premises owe their prosperity to increased living standards and purchasing power.
- Self-service stores: less than 100m2 showroom.
- Supermarkets: between 100-2500 m2 room.
- Hypermarkets: more than 2500 m2.
- Discount chains (wholesale): adopt self-service, shifting the merchant’s role to the buyer. Removing personnel and selling large quantities improves prices on food and household items. They are located in city centers or neighborhoods, except for