Oil Crises and Soviet Collapse: Economic Shifts
Oil Crises (1973 & 1979-80)
The first crisis wasn’t solely due to rising oil prices. It resulted from overlapping issues: rising oil prices, speculative currency exchange, the collapse of the Bretton Woods system, supply shortages of raw materials, agricultural crises, and strained political relations between Europe and the US. Sociological factors, like the French May 1968 protests and anti-Vietnam War movements, also played a role.
Main Indicators
- Sharp rise in oil prices, causing distortions
Market Structures: Competition, Monopoly, and Oligopoly
Competition
Rivalry among several companies trying to sell the same kind of goods or services to the plaintiffs in that market.
Perfect Competition
Characteristics
In this market, there are very few barriers to entry and exit. There are a lot of small producers who make an insignificant portion of the total market. The good exchanged is homogeneous; i.e., there is no difference between the products. Producers and consumers are familiar with the product characteristics and price. The producer has no
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External Environment
The environment encompasses external events (policy, technology, etc.) affecting a company’s activities, results, objectives, and decisions. Understanding this environment is crucial for identifying opportunities and threats and making necessary internal adjustments.
General Environment
The general environment impacts all companies similarly, regardless of their specific activity. Key factors include:
- Legal and Political: Legal frameworks, political ideologies, stability, and legislation.
Human Resource Management: Motivation, Leadership, and Employment Contracts
Functions of Human Resource Management
It is important to analyze how to motivate employees to achieve goals. Assessment systems of rewards and incentives should be established. Motivation is necessary for the study of leadership (formal and informal levels) and the development of appropriate communication processes. Human capital is a competitive advantage, with components of competence including knowledge, skills, interests, motivation, and willingness to use resources. People make different organizations;
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Retirement is the name given to the administrative act that allows individuals to cease gainful employment, either on their own or for someone else, after reaching a certain legal maximum age. This act is often associated with a passive state of employment. Upon termination of employment, the beneficiary of the pension is credited with an economic benefit, which is usually a monthly rent. The provision is for life and is only extinguished with the death of the interested party. The termination of
Read MoreUnderstanding Consumer Behavior: Utility Theory, Competition, and Monopoly
Utility Theory
Utility theory attempts to explain consumer behavior. From this perspective, utility is the ability of an asset to satisfy needs. A good is more useful to the extent that it better meets a need. This utility is qualitative (real or apparent qualities of the goods), spatial (the object must be within reach of the individual), and temporal (referring to when the need is satisfied).
This theory is based on several assumptions:
- Consumer income per unit of time is limited.
- The characteristics