Key Concepts in Economics, Globalization, and Finance
Key Concepts in Economics and Finance
Economics is the social science that studies the production, distribution, and consumption of goods and services. The term economics comes from the Greek for oikos (house) and nomos (custom or law), hence the house rules (home).
Globalization is a process of deepening economic, social, cultural, and political integration, which has been boosted by cheaper means of transport and communications since the end of the twentieth century and the early twenty-first century. It is a phenomenon generated by the dynamics of capitalism’s need to form a global village, allowing major markets for the core countries (the developed) whose domestic markets are already saturated.
Financial Management is a tool or technique used to control resources in the most efficient way possible, with regard to granting credit to customers, planning, investment analysis, and the viable means for obtaining resources to fund operations and business activities, always aiming at development, avoiding unnecessary expenses and waste, and noting the best way to conduct financial business.
Financial Analysis refers to the evaluation or study of the feasibility, stability, and profitability of a business or project. It comprises a set of tools and methods which perform diagnostics on the financial situation of a company, as well as predictions on future performance.
Credit – the possibility of barter exchange…
The Balance Sheet, after reformulation given by Law 11.638/07 along with MP 449/08, initially introduced a new global concept for this statement. Since 2008, this statement must show both active and passive elements for the portion that corresponds to the “stock” of the company and the “non-circulating” assets. In Accounting and Law, the word “balance” reflects the balance or equality expressed in the following formulas:
- Activate = Liabilities + Equity
- Applications = Origins
The Comptroller is a segment of Accounting, but can also be defined as a branch of Directors, depending on the approach taken by managers and accountants responsible for supplying information to decision-makers. Because of this, it can be divided didactically into Comptroller Administrative Accounting and Controlling, but in practice, it is unusual because both sides tend to be under the aegis of a single manager (controller).
Accounting is the science whose object of study is the heritage of entities, phenomena, and their variations, both in quantitative and qualitative terms, recording the events and acts of an economic and financial nature that affect it and studying its effects in the dynamic financial landscape.