The Company and Its Environment: A Comprehensive Guide
ITEM 1. THE COMPANY AND THE ENVIRONMENT
The Company as an Economic Unit
Companies, in order to perform the production function, need families to have the function of consumption, but also to provide some of the factors of production (labor, capital). Therefore, consumption and production are the two key activities in all the exchange relations that are generated in the economic system, where the company is the hub of all activity. We can define the firm as an organized set of elements coordinated
Read MoreInternational Trade and Balance of Payments
1. International Trade
1.1 Factors that Promote Trade Growth
- Lack of resources domestically
- Goods and services with lower costs in other countries
Absolute Advantage
A country trades with another country only if the goods supplied to it are at a lower price.
Comparative Advantage
Buying outside the national need for opportunity cost.
1.2 Protectionism
A set of measures adopted by a state to protect their merchandise or industries abroad.
Several Measures
- Quotas: setting amounts
- Subsidies to domestic production
- Qualitative
Chilean Customs Tariff, Trade Agreements, and Clean Production
What is the Chilean Customs Tariff?
The Chilean Customs Tariff is the official list of goods and their associated tariffs for import and export, structured according to the International Harmonized System of Description and Coding.
Chile’s Trade Agreements
Types of Agreements
Chile has signed various trade agreements, including:
- Free Trade Agreement (FTA): An agreement to expand markets for goods and services between participating countries by eliminating or reducing tariffs and establishing agreements
Product Life Cycle, Pricing, and Distribution in Marketing
Branding Strategies
Single Brand vs. Multiple Brands
Companies can choose between a single brand or multiple brands for their products. A single-brand strategy, also known as an umbrella brand, uses the same name for all products. This approach can reduce promotional costs but carries the risk of a single product failure impacting the entire brand. Conversely, a multiple-brand strategy uses different names for each product or product line. This allows for greater flexibility and reduces the risk of
Read MoreCapital, Value, Work, and Alienation in Marxist Thought
CAPITAL
Expanding value, capital in its initial form is a mass of money that allows its owner to obtain a larger amount than the first. Used to purchase machinery and raw materials and, on the other hand, labor force. Capital is variable and constant capital. Once the capitalist owns it, they can organize the production of a certain good. Its value must be greater than the sum of constant and variable capital used in production. The money from the sale must be greater than the investment. Marxism
Read MoreAudit Procedures and Evidence: A Comprehensive Guide
Audit Evidence and Claims Administration
Audit procedures gather evidence on implicit claims within financial statements. Auditors should relate these statements to risks and obtain sufficient evidence to support their opinion.
Claims Administration Criteria
These claims address criteria for registering and disclosing financial information in financial statements:
- Existence
- Completeness
- Rights and obligations
- Valuation
- Presentation
- Accuracy
Assertions about Financial Statements
- Existence or occurrence: Assets,