Distribution Channels: Strategies and Market Access
Distribution Policy and Channels
The main challenge in distribution policy lies in the dispersed locations where goods must be retrieved. This necessitates the creation of efficient distribution channels.
Choosing a Distribution Channel
Several factors influence the choice of distribution channel:
- Market Entry Strategy: The chosen market entry method will significantly impact the distribution policy.
- Desired Level of Control: Maintaining control over distribution, including aspects like transportation
Macroeconomic Equilibrium and Public Sector Policies
Aggregate Demand and Macroeconomic Equilibrium
Defining Aggregate Demand
A country’s economic activity is defined by variables that determine price level, employment, and production. These variables fall into two categories:
- Aggregate Supply (OA): The total amount of goods and services businesses are willing to produce and sell at each price level. This depends on:
- Productive capacity (facilities and their utilization)
- Cost and availability of production factors
- Available technology
- Aggregate Demand (
Economic Theories and Market Dynamics
Economic Foundations
Economy: The rational application of scarce goods.
Factors of Production: Resources adding value in production.
Historical Economic Theories
Mercantilism (17th-18th Centuries)
Emphasis on precious metals and foreign trade. Key figures: Jean Baptiste Colbert, David Hume.
Physiocrats (18th Century)
Agriculture as the only productive activity. Key figure: François Quesnay.
Classical Economics (Late 18th Century)
Industrial Revolution influence, invisible hand theory (Adam Smith). Key figures:
Read MoreBusiness Organization, Decision-Making, and Personnel Management
Business Organization
The company is the operator that coordinates production factors to achieve predetermined goals. This definition applies to any economic system. Organizing production factors involves making business decisions about responsibilities, resources, financing, sales, distribution, etc.
Decision Making
Decision-making involves establishing or reforming something to an end, coordinating people and resources. Organizations have two major tasks:
- Define departmental tasks.
- Assign individual
Public Revenue, Money Evolution, Inflation, and Financial Markets
Classification of Public Revenues and Taxes
Social Contributions
Payments made to social security for those entitled to benefits.
Charges or Taxes
Taxes
Payments required by law without a specific benefit in return.
Direct Taxes: Taxes on income or wealth (PIT, Corporation Tax).
Indirect Taxes: Taxes on consumption (VAT).
Fees
Payments for the use of public goods or services (garbage collection, driver’s license).
Special Contributions
Payments for benefiting from public works (street paving).
Historical Evolution
Read MoreCapitalism, Crises, and Globalization: An Economic Analysis
Read MorePAC1: Defining the Exploitation Rate
v: Variable capital. These are the working hours needed to produce what workers consume. It’s the part of the total value assigned to the reproduction of workers, who spend all their income on goods.
p: Mass of surplus value, which corresponds to the profits of capitalists. Capitalists, as owners of the means of production, appropriate a portion of the produced value. The surplus is the value that workers produced over the wages they receive.
Exploitation rate: