Key Economic and Social Science Concepts

Comparative Advantage

Comparative advantage occurs when a country has the capacity to produce goods or services at a lower opportunity cost than other countries. This allows exporters to gain more traction in the market by optimizing costs and benefits. For example, in the fruit sector, a country with a comparative advantage in fruit production can export more efficiently.

Supply and Demand

  • Supply: The maximum quantity of goods a producer is willing to sell in the market at a given price and time.
  • Demand:
Read More

IT Impact on Business: Change Management & Structures

IT and Change Management

Change Management at Firms

Implementing technology makes the company change processes to take advantage of the new systems.

Organizational change implies removing some structures, procedures, or routines.

Main goals of organizational change:

  • Increase profitability
  • Increase market share
  • Improve efficiency
  • Enhance the quality of service

Change management implies the method to make the complex migration from an initial non-desired status to a final desirable one.

The Process of Change

Process:

Read More

Corporate Finance: Mergers, Acquisitions, and IPOs

Mergers and Acquisitions

1. Concept: Indisputable Grounds for a Merger (External Growth Versus Organic Growth)

A merger is an agreement between two or more legally independent companies to combine their assets and create a new company. This type of merger is sometimes called a consolidated merger and is not necessarily a “merger between equals”; rather, it can be an acquisition that results in a new company.

When one of the companies acquires the equity of the others, this merger is called a statutory

Read More

Marketing Mix and Product Life Cycle Explained

The Marketing Mix

A company has four instruments on which to decide, and which are known as the 4Ps of the marketing mix:

  • Product: The first decision that the company has to make concerns the characteristics that the product must have to attract potential customers’ demand. This includes the design, quality, branding, packaging, and guarantees. It is a long-term decision.
  • Price: Pricing decisions are critical to the response of consumers, hence their importance in setting or modifying them. To make
Read More

Organizational Structures: Simple, Functional, Divisional

Simple Structure

  • Small and very narrow product line
  • Highly informal information flow
  • Owner-manager/top executive makes most of the decisions
  • Staff serves as an extension of the owner
  • Coordination of tasks by direct supervision

Advantages:

  • Decision making is very centralized
  • Few rules and regulations may foster creativity
  • Owner-manager is involved in all stages of business

Disadvantages:

  • Informality may lead to problems
  • Employees may not clearly understand their responsibilities, leading to conflict and confusion
  • Lack
Read More

Social Inclusion Strategies for People with Disabilities in Europe

These strategies address the general population and people with disabilities specifically. The Council of Europe focuses on several areas, including dependency:

  • Mainstreaming: This concept, often used in gender equality policies, involves cross-disciplinary partnerships and integrating various European organizations across health, migration, disability, and gender equality.
  • Continued development of social cohesion through seminars, expert panels, and socio-demographic studies to address social trends.
Read More