Internet’s Impact on Business and Spain’s Economic Crisis
Business and the Internet
The evolution of technology is accelerating year after year. Since the beginning of this millennium, with the arrival of the Internet, the world’s society is changing in different ways and sectors. The influence of the ‘net of nets’ is enormous. For example, it is possible to connect with a person on the other side of the world and also buy and rent different products. Thus, the Internet has generated a new market that is increasing its customer base every day.
This new industry
Read MoreStrategic Pricing: From Skimming to Promotions
Market Skimming Pricing
Setting a high price for a new product to maximize revenues from the segment that is most willing to buy it.
- Introduce the product at a high price.
- Reduce the price for the second-tier segment.
- Reduce the price again for the third-tier segment.
- Continue this process as needed.
Conditions:
- The product must be perceived by customers as having high quality.
- There must be a large enough segment willing to pay the high price.
- Revenues must exceed the costs of producing on a small scale.
Cash Flow, Income Statements, and Financial Position
CASH FLOWS FORECASTING AND WORKING CAPITAL:
Why cash is important to a b?
(Cash:liquid asset,meaning it can be auickly spend on goods/services)
cash flow: the flow in and out of a b over a period of time
without enough cash, bs face is
sues like: inability lo pay workers, suplliers, or other obligations; prod halt(workers wont work withouy pay, suppliers won’t deliver without payment) and possible liquidation-sellimg assets to pay debts.
Cash inflows:
sums of money recieved by a b during a certain
Read MoreMarketing, Accounting, and Finance Essentials
Marketing Essentials
The 4 P’s of Marketing: Price, Place, Promotion. Making effective decisions about which “medium” to use to promote your product is essential. The decision will be influenced by:
- The target audience
- Size of the market
Types of Promotion
- Loyalty programs: Marketing efforts that reward a person for frequent purchases and the consumption of offerings.
- Coupons: A voucher entitling the holder to a discount off a particular product.
- Discounts: Deduction of the price of something.
- Mobile
Understanding the 2008 Financial Crisis and Its Lessons
Understanding the 2008 Financial Crisis
The Crisis of 2008 will probably be the most important macroeconomic event of our lives. So, it is very important for each of us to understand what happened, why things went wrong, and the lessons that need to be learned from the experience. This crisis is a story about lower mortgage credit standards, loans extended with little or no down payment, manipulation of short-term interest rates by the Federal Reserve System, and imprudent leveraging of mortgage-
Read MoreEconomics Analysis: Trade, GDP, Inflation, and Policy
Question 1: International Trade Analysis
(a) Opportunity Costs and Comparative Advantage
(i) Opportunity cost of producing corn:
- Nebraskia: 25 cars = 800 units of corn → Opportunity cost = 800/25 = 32 units of corn per car.
- Michigaland: 200 cars = 1000 units of corn → Opportunity cost = 1000/200 = 5 units of corn per car.
(ii) Opportunity cost of producing cars:
- Nebraskia: 25 cars = 800 units of corn → Opportunity cost = 25/800 = 1/32 cars per unit of corn.
- Michigaland: 200 cars = 1000 units of corn