Key Economic Principles: Markets, Finance, and Policy
Economic Concepts: Farmers, Finance, and Trade
Farmers’ Challenges and Solutions
- Challenges:
- Protectionism
- Rising costs and taxes
- Environmental regulations
- Impact of drought
- Competition from food imports
- Solutions:
- Reducing chemical use for health and environmental benefits
- Protecting local products by limiting imports
- Simplifying bureaucracy
Exchange Rate Systems
Fixed Exchange Rate
- Pros:
- Reduces inflation: Prices do not rise quickly
- Maintains the value of money
- Provides stability
- Lower transaction costs associated
Essential Financial Metrics and Asset Management Concepts
Positive Working Capital (Fons de Maniobra)
Positive working capital is the difference between current assets and current liabilities. It can also be defined as the portion of current assets funded by permanent capital. Positive working capital implies that current assets are financed with long-term resources, providing financial stability and greater liquidity for current assets relative to current liabilities. The overall liquidity depends on the level of current assets (without significant loss
Read MoreFirm Financing and Investment Behavior: Fazzari, Hubbard, Petersen
Financing Constraints and Corporate Investment (FHP, 1988)
Introduction
When capital structure is irrelevant, investment (INV) decisions are independent of a firm’s financial condition. However, if internal and external capital are not perfect substitutes, INV may become dependent on financial factors. This study connects conventional investment models with the literature on capital market imperfections and disparities in firms’ access to capital markets.
Key Predictions and Findings
- If the cost disadvantage
Hotel & Tourism Industry Essentials: Operations, Management, and Key Concepts
Hotel Management & Tourism Industry
Understanding Tourism Dynamics
Moving with time and reason.
Types of Tourism
- National
- International
Motivations for Travel
- Cultural & Sports
- Ecotourism
- Social & Religious
- Family & Ecological
- Alternative & Leisure
- Personal Travel
Economic Impact: Tourism Generates Revenue
Tourism Enterprises & Services
Defining Tourism Enterprises
An enterprise that offers services for payment.
Hotel Establishments
An establishment providing room and board for payment.
Hotel
Read MoreWelfare Economics & Fiscal Illusion: Key Economic Theories
Welfare Economics: Foundations & Concepts
Welfare economics aims to move beyond purely ethical judgments (e.g., “more is better than less”) to achieve a universally accepted supreme goal: maximizing social welfare. It represents a monistic approach to economic well-being.
Classical Welfare Economics
Developed by economists like Alfred Marshall and Arthur Pigou. Marshall defined production and economic well-being in terms of happiness, focusing on identifying the economic policy factors that contribute
Read MoreEconomic Principles: Elasticity, Surplus, and Taxation
Understanding Price Elasticity of Demand
1. What does the price elasticity of demand measure?
- e. a consumer’s sensitivity to a price change
Reference: Determinants of the Price Elasticity of Demand
2. Ice Skates Demand Elasticity Analysis
From the accompanying table, we would expect that, for recreational skaters, the price elasticity of demand for ice skates between $10 and $20 to be ________ than that of hockey players because ________.
| Price of Ice Skates | Quantity Demanded (hockey players) | Quantity |
|---|