Fundamental Economic Concepts and Principles
What is Economics?
Economics is the study of the best allocation of a company’s scarce resources to achieve a set of objectives, whether individual or collective societal needs.
Understanding Economic Scarcity
Scarcity is a relative concept, meaning there is a desire to acquire a quantity of goods and services greater than what is available. Scarcity can be mitigated but not eliminated, as goods and services are limited due to insufficient resources to produce all that individuals wish to consume.
Opportunity
Read MoreStrategic Brand Management & Market Adoption Phases
Brand Strategy Decision Levels
Brand strategy involves several levels of decision-making. The main challenge often revolves around pricing, as consumers tend to purchase more when prices are low. Prerequisites to develop a strong brand include:
- The product must be distinguishable.
- The consumer must be able to assess the attributes that guarantee the brand’s quality.
Generic vs. Branded Product
The primary consideration here is pricing, as consumers often prefer lower-priced options. To develop a successful
Read MoreKey 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.