Economic Transformations in the Periphery: Post-War & Soviet Experiences
Lesson 10: The Economics of the Periphery
10.1 The Disintegration of Central and Eastern Europe
This was a consequence of the war crisis. A nationalist strategy, focused on economic independence and strengthening national production, was generally adopted.
In the Industrial Sector
The “Import Substitution” policy aimed to bolster domestic industry, foregoing the comparative advantages of the international market. This involved creating industrial complexes focused on consumer goods production, partly
Read MoreInventory Management & Investment Valuation: A Comprehensive Guide
Inventory Management
Stock Definition
Inventory encompasses all materials a company possesses in its warehouse to fulfill its operational needs. There are six main types:
- Raw Materials: Materials intended to become part of finished products after processing.
- Semi-Finished Products: Products made by the company but not intended for sale and require further processing.
- Finished Products: Manufactured products ready for final consumption.
- Merchandise/Stock: Materials purchased for resale.
- Other Supplies:
Forms of Money, Financial Systems, and Monetary Policy
Forms of Money
1. Commodity Money
Has value in itself and also as a medium of exchange (e.g., diamonds, gold).
2. Money Mark
2.1. Paper Money
Receipt issued by a depository for valuables, promising to repay them upon reinstatement.
2.2. Fiat Money
Money used as a medium of exchange because of the trust it generates (e.g., coins, banknotes).
Functions of Money
1. Medium of Exchange
An alternative to bartering.
2. Deposit of Value
A good that can be used when needed.
3. Unit of Common Account
The type of measurement
Read MoreWorld War I: Economic Impact and Global Consequences
2) War Economy and Economic War
War Economy
The transformation of the productive system to adapt to war involved the entire economic apparatus being dedicated to achieving victory. Initially anticipated as a short conflict lasting no more than six months, it ultimately spanned four years. The first step was to suspend the free market, as assigning profits became impossible. A process of state interventionism emerged, with the state becoming the allocator of resources and assets.
There was a strong
Read MoreThe Industrial Revolution and the Great Depression: A Historical Analysis
The Industrial Revolution in the 19th Century
As Hobsbawm notes, the full effects of the Industrial Revolution weren’t felt until after 1830. While the revolution itself predates the term, its acceleration began much earlier, possibly around the year 1000, according to Hobsbawm. The “take-off” period commenced around 1780, marking a significant turning point. Between 1780 and 1790, the revolution became apparent. Originating in England, which Hobsbawm argues was culturally behind nations like
Read MoreCommercial Techniques, Distribution & Product Levels: A Comprehensive Guide
Commercial Techniques
1. Introduction Stage
This stage of the product life cycle can be the most expensive for a company. Market size and sales are low, while research and development, consumer testing, and marketing costs are high, especially in competitive sectors. Product price is typically low.
2. Growth Stage
This stage is characterized by strong sales and profit growth. Economies of scale in production lead to increased profit margins. Businesses can invest more in promotional activities to
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