Fundamental Principles of Economic Activity and Theory
Fundamental Economic Concepts
Economic Acts and Problems
The economic facts of production, distribution, and consumption occur spontaneously, often without people being fully aware of their actions or the various processes involved. However, when an individual becomes aware of their needs and how to satisfy them, they engage in an economic act.
Economic Act: Conscious actions taken by individuals to satisfy their needs. For example, families consume goods, companies produce them, and governments often
Defining and Managing Strategic Business Units (UENs)
What is a Strategic Business Unit (UEN)?
A strategic business unit, hereinafter UEN, is defined as follows: it is a unit or corporate body consisting of one or more specific products serving a well-defined common core market. It is overseen by a manager responsible for integrating all functions via a strategy aimed at competing against identifiable competitors. Key characteristics derived from this definition include:
- A unique and differentiated mission
- Easily identifiable competitors
- A clearly defined
Economic Shifts: Industrial Revolution & Growth Models
Economic Shifts and Growth Models
Structural Change
A structural change represents a shift or change in the fundamental way an economy functions. As income grows, literacy and education levels rise. Governments invest in public schools to enhance workforce qualifications. A key difference between pre-industrial and modern industrial societies is the reduced role of agriculture. Modern agriculture’s increased productivity feeds a large non-agricultural population. Efficiency gains lead to fewer people
Read MoreHR Scorecard: Strategic Human Resource Management
HR Scorecard: Linking Strategy and Results
A scorecard is a methodology used to link economic management with results. The balanced scorecard helps reduce uncertainty and facilitates risk management in decision-making. It serves as a valuable decision support tool.
Strategic Role of HR
HR’s role is expanding to include the measurement of intangible assets. HR acts as a strategic asset architect, analyzing elements of the value chain. The HR scorecard integrates HR systems with business performance
Read MoreUnderstanding International Trade: Definition, Characteristics, and Reasons
Understanding International Trade
Business Services encompass the study of trade in goods, services, and capital within the international environment. This is primarily justified by the diverse resources and technological capabilities of different nations.
Key Characteristics of International Trade
- Major Exporters: Predominantly industrialized nations.
- Trade Concentration: A significant portion of world trade occurs within industrialized countries (OECD countries).
- Intra-Industry Trade: Increasing importance
Understanding Primary Needs, Production Factors, and Economic Sectors
Understanding Basic Economic Principles
Primary Needs
Primary needs: These are essential for survival and maintaining a dignified life as a citizen. Examples include:
- Food
- Housing
Secondary Needs
Secondary Needs: These are more evolved needs related to human beings as social beings. Examples include:
- Leisure
- Communication
Factors of Production
Land
Encompasses all resources extracted directly or indirectly from nature (raw materials). Examples include trees for paper. They are classified into:
- Renewable (not