Spanish Banking Evolution: From San Fernando to Banco de España

Before the establishment of the Banco Español de San Fernando, the financial situation was not sound. The government forced through the merger of two institutions; their shares were exchanged at par despite their differing economic situations. The resulting new bank was called Banco Español de San Fernando.

The Banco Español de San Fernando (1847-1856)

Even though the bank had a paid-in capital of 200 million reales, its problems did not disappear. Many of the new bank’s assets were impaired,

Read More

Fundamental Economic Models and Concepts

Understanding Key Economic Concepts

The Circular Flow Diagram

  • This model simplifies the economy to include two types of decision-makers: businesses and households.
  • Businesses produce goods and services using factors such as labor, land, and capital. These are called factors of production.
  • Households own the factors of production and consume all goods and services produced by businesses.
  • Households and firms interact in two types of markets:
    • In markets for goods and services, households are buyers and
Read More

Key Economic Concepts Defined

  1. Microeconomics

    The branch of economics that studies the economy of consumers, households, or individual firms.

  2. Macroeconomics

    The branch of economics that studies the overall working of a national economy.

  3. Scarcity

    Scarcity is the fundamental economic problem of having seemingly unlimited human needs and wants in a world of limited resources. It states that society has insufficient productive resources to fulfill all human wants and needs.

  4. Economic Efficiency

    The use of resources to maximize the production

Read More

Costa Rica: Customs & Residency Programs for Businesses & Individuals

Inward Processing Regime (PA) in Costa Rica

The Inward Processing Regime (PA) is a customs procedure in Costa Rica that allows goods to enter the country with the suspension of all types of duties and taxes, subject to a guarantee. This regime is designed to promote re-export and local sales of transformed products.

Modes of the Inward Processing Regime

This scheme operates under two primary modes:

  • 100% Re-export (Directly or Indirectly): This mode benefits companies that re-export their entire production
Read More

Business Planning & Financial Terminology Explained

Business Planning Essentials

Product & Service Description

This section describes the product or service in detail, including relevant criteria such as weight, color, shape, texture, and volume.

Production Process

This outlines the logical phases that must be followed in the manufacture of our product, detailing the steps involved in achieving the desired output.

Production Plan

These plans are outlined in more detail within our product or service description. They encompass the overall strategy for

Read More

International Trade Dynamics: Theories, Balances, and Exchange Rates

International Trade Fundamentals

Defining International Trade

International trade is the exchange of goods and services between different countries.

Free Trade Principles

Free Trade: The absence of barriers to the exchange of goods and services between countries.

Economic Impact of Global Trade

  • Companies are compelled to constantly innovate and adapt their behavior to remain competitive.
  • Exports from countries with low production costs can influence developed economies.
  • The bulk of world trade involves
Read More