Service Sector, Trade, and Tourism: Key Economic Drivers

The Service Sector: An Overview

The service sector is characterized by not producing material goods. The more advanced a society is organized, the more important the service sector becomes.

Public Sector

The public sector is managed by the government of a nation to meet the demands of the population, and this requires certain levels of welfare.

Private Sector

The private sector is driven by private initiative and profit.

Business

Business involves the purchase and sale of products and goods. The ultimate

Read More

US and EU Agricultural Policies: Impacts on Global Markets

New Political Objectives of the CAP, According to Agenda 2003

  • Improves competitiveness, which translates into lower prices and maintenance and consolidation of exports.
  • Food safety and quality.
  • Protection of animal welfare.
  • Quality policy, designation of origin, and particular production methods.

Purpose of the New European Model of Agriculture

  • Social legitimation of CAP support.
  • Preparation of the strategy for the new round of negotiations on the CAP.
  • Maintain or lose EU share in international commodity
Read More

Public Goods, Taxes, and Fiscal Policy in Colombia

Public Goods and Merit Goods

Public goods are goods and services that the market alone will not provide in the quantities that society deems desirable. These are characterized as non-excludable and non-rivalrous.

  • Non-excludable means it is impossible to prevent individuals from using or consuming the good or service.
  • Non-rivalrous means that the use by one individual does not limit the use or consumption by other individuals.

Merit goods, unlike public goods, can be purchased individually but often

Read More

Corporate Finance: Management, Planning, and Analysis

Topic 1: Financial Management

What is Financial Management?

Financial management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization.

The Chief Financial Officer (CFO) is in charge of a company’s financial operations.

Key Aspects of Financial Management

  • Anticipation: Financial management estimates the financial needs of the company.
  • Allocation: It uses this collected finance to purchase fixed and current assets for the
Read More

Strategic Marketing Mix: Product, Price, Distribution, and Communication

Item 19: Decisions in the Marketing Mix

19.1 Concept of Marketing Mix

To design marketing strategies, marketers have some basic tools available. These tools must be properly combined to achieve the objectives set. They can be summarized in four controllable variables of the trading system, the Four P’s: product, price, distribution, and promotion. These instruments are considered controllable variables that can be modified. However, these modifications are only possible within limits. The marketing

Read More

Microeconomics: Key Concepts and Applications

1. Comparative Advantage in Wool Production

Refer to Figure 1. From the figure, it is apparent that New Zealand has a comparative advantage in producing wool, relative to the rest of the world. (C)

2. Consumer Surplus with Trade

Refer to the figure above. When trade in wool is allowed, consumer surplus in New Zealand decreases by the area B + D. (C)

3. Negative Externality of Air Pollution

Since air pollution creates a negative externality, social welfare will be enhanced when some, but not all, air

Read More