Progressive Business Reading

Archive for the ‘Economic’ Category

Although in the first half of this century the Austrian economist Schumpeter rationalized the concept of innovation in economic analysis has been more recently when the concept of innovation has taken citizenship in everything that refers to economic development, as a result of this reality, it has become an essential element of any process of generating wealth.
In the turbulent times we live involves many variables sociological, economic and cultural, always changing, forcing companies to adapt quickly to new scenarios, different and unexpected. At the same time, the degree of competitiveness and globalization, which currently defines the market drives the production units to research, progress and evolve strategically placed in competitive positions of the head. In this regard, and if we understand innovation as a process of improvement and constant change of technology, techniques and organizational means and knowledge, in order to overcome the competitive standards, understand the radical significance of this concept has for business management. Read the rest of this entry »

The Economic and Commercial Office of Spain in Canton, published ten tips for executives and entrepreneurs seeking to do business in China. A very successful synthesis.

TEN TIPS FOR ENTREPRENEURS

1. Nothing changes with a smile, but everything is better.
The goal of business is always the same: make money. What purpose does not deserve that happy smile?. He who does not smile is that he does not believe in the business.
2. Tradition is not closure (or uniformity).
The Chinese value their tradition, but appreciate the best products from other lands. Moreover, in China, is more true than in Europe “there are people for everything.”
3. Good business is always personal. Good teams, even more so.
Business is not done between businesses but between people, between teams. The stability of the equipment is very important. So is that communication between members of a similar level to another.
4. For its Chinese partners, the more humble title is critical.
A well chosen title, a well-made card, a uniform, as usual, and a gift for the holidays a bonus worth more than five times the value of it.
5. The error is not guilt but opportunity.
For those who detect it, to teach and who commits it, to learn. Defacing a mistake of a subordinate is sterilized. A mistake is an opportunity to demonstrate that it can allow you to fix it if possible and in any case, to learn how not to repeat.
6. In the negotiations, if you look at what happens not know much of what is actually happening.
Insists, or better, than others insist for you. In a person, the absence of a common gesture is revealing. In business, no news is telling. You have to know insist on parallel channels and identify who makes the obstacle and why.
7. The Chinese language is a bit difficult but learning very quickly.
40 hours of Chinese class will not fought to bring an interpreter, but will help to enhance the effectiveness of your communication. Learn hello, goodbye, invite to tea or lunch is often the personal touch that makes things easier.
8. A company with history account. It tells the story of your company.
Since matter in China. Where an American would you cut the crap a Chinese will have a genuine interest and respect for the history of the company-even if it is a family business. Your business must know it, and know how to count.
9. If the door is closed, enter through the back door.
In good business, as in good companies, which it is entered, but not a the place to which one aspired.
10. The benefits have not the past but the future.
Boast of profits is not a good tactic to get members. Our partner will have been informed, or be informed. What matters, and persuades “is weighing the benefits to be achieved in the future thanks to the collaboration that now proposed. Much better if we can convince those profits “only” could get “that” working with “this” partner.

The economic calculation is a point and critique of economic planning in discussing the economic calculation. The economic calculation is how to rationally distribute resources in an economy. Calculation of economic and free market solutions is the price mechanism, where the individual has the ability to decide how a good service or must be distributed based on their willingness to give money for it. based on joint decisions of individuals, a correction that prevent shortages and surpluses, the only possible solution, and without information provided by the socialism market price less a rational method for allocating resources. If we are honest, we would agree with this criticism and argues that economic Perhitunhgan is a refutation of non-market socialism and that it shows that the socialist planned economy can never work. The debate raged in 1920 and 1930, and a specific period of the debate has come to be known by economic historians as The Socialist Calculation Debate.
An important part to understand the depreciation of currencies and relative value calculation. It provides detailed explanations and examples such as how to measure the relative value of the dollar amount of a particular year between 1774 and now in 6 different ways, by: CPI, GDP deflation, Consumer Bundle, Unskilled Wage, GDP Per Capita and (relative share) GDP.
Ludwig von Mises seminal essay, originally published in 1920 *, appears in the 1990 edition published by the Ludwig von Mises Institute. “Economic Calculation in the Socialist Commonwealth” advances a devastating criticism against the economic calculation in a socialist economy, inspiring decades-long debate. For more information, resources, and materials concerning the calculation debate, visit Calculation Debate in Austria Study Guide.
For industry to operate effectively, it is necessary that those responsible can do “economic calculation.” That’s no problem at all, for the purposes of this argument, whether “those responsible” is a professional manager, greedy capitalists, workers’ councils or assemblies of other democratically elected, or holy men appointed by the gods. Economic calculation problem faced by those examined in more detail in some of the following essays, but the general idea can be explained very short and simple.

If there is no money in an economy with goods (or services) would be exchangeable N (N-1) / 2 price or terms of trade potential. These prices would not be completely independent of each other: if the price of a direct exchange between two goods does not coincide with what would be achieved with an indirect exchange between the same two goods (one or several different goods as intermediaries), arbitrage opportunities would to use the exchange process to afford more benefits, changes in demand and supply of goods by these mechanisms alter the relative prices to adjust so that only N-1 prices are independent (this process will be limited by transaction costs and collection and processing of information).

The agents in this system can operate without money, knowing and remembering all the prices of the exchanges that often make or computed from a basic set arbitrary (potentially different for each agent) independent price that will generate all the others as needed ( knowing the price of A relative to B and B price compared to C is possible to calculate the price of A relative to C), or a combination of both systems (remembering some prices and calculating others). For a complex system with a large number of goods both options are problematic, either because the amount of information to store or by the need for processing. Besides these direct barter prices vary constantly.

The existence of money with a stable purchasing power or value minimizes the problems of price information concerning: the N-1 core prices used are those of all other goods in regard to money, the relationship of exchange between two goods is calculated prices from their money.

The money used as a common unit of account simplifies the problem of accounting, the economic calculation of business results. It is always possible to compare the assets of two operators, however different it is, and variations thereof by the prices of all goods involved to some other arbitrary well serve as a benchmark for comparison or unit of account. But if you use different references is possible that the relationship between them is not stable and these variations can hinder the relative comparisons. The money serves as a standard or universal language through which to express prices, valuations of equity capital and results of business activity (profit or loss.)

The use of different names to refer to different amounts of the commodity money (coins) is a relatively simple conversion problem. It is much more problematic to use units of account relating to property other than relative value can change.

In a developed economy finance money gradually becomes something more abstract: the agents can maintain or even increase value through financial instruments are safe, and complements or substitutes may be used instead of exchanging money materially physical money. These facts may lead some to fall into the trap of believing that money can be anything without real value coercion enacted by the government as a common reference, the unit of account is an arbitrary standard (such as units of magnitudes physical) that can and should be imposed and optimized from the interventionist political power instead of leaving institutional evolutionary adaptation function.

Can also be used to alter the value of money allegedly set of macroeconomic variables is fine (more growth and jobs in exchange for inflation). In reality, the technocrats in charge of monetary monopoly state systematically failed in its efforts to optimize economic activity, are not able to adequately stabilize the value of money, distort the unit of account, difficult economic calculation and cause recurring cycles of booms and busts .

The existence of multiple national currencies forced tender, not convertible into physical money at fixed rates and changes in relative arbitrary further aggravates the problem of finding stable common units at a universal level: the problem is reduced if citizens can freely choose at least between these currencies in competition for their commercial.

The growth and competitiveness in the global market COUNTRIES, Latin America must be oriented in innovation and in bringing the nations of the Asia-Pacific, which have become the main pole of economic growth in the world.

This is the view expressed by the Economic Commission for Latin America and the Caribbean (ECLAC), on documents presented by Alicia Barcena, executive secretary of the agency, during the Sixth Ministerial Meeting of the Forum of Latin American Pacific Arch, which takes place in Cusco, Peru.

In the first, science and technology in the Latin American Pacific Rim: space for innovate and compete, ECLAC points out that innovation is a central element in the development strategy as it enables sustainable economic growth, long-term, equitable and competitiveness. Read the rest of this entry »

Latin American SMEs glimpse signs of recovery for the first time since 2008 and project a good year for 2011, according to an international survey.
The study UPS Business Monitor Latin America (LAMF), in its fourth edition, shows that nearly 80% of SMEs surveyed projected an economic improvement over the next 12 months.
Among those interviewed are the SME leaders of Chile (90%), followed by Brazil (82%) and Colombia (81%) who assigned the growth potential of 2011 the highest rating.
Meanwhile, the positive views increased significantly in Argentina and Chile about two years ago, 20% to 68% and 37% to 90%, respectively.
Although they have not returned to the performance levels seen before the crisis, SMEs have confirmed a significant decline in the labor force reductions and put the marketing and sales as its main investment priorities for 2011.
“The latest study’s findings are very optimistic considering that economic conditions are improving, and are seeing opportunities for future growth,” said Romaine Seguin, president of UPS Americas.
“SMEs are stabilizing their workforce and are ready to invest in strategies that will help them take advantage of the boom to bring in 2011,” he added.
The expert said the study “is a resource that offers businesses of all sizes to help you stay aware of opportunities and trends in their region.”
Since 2006, UPS made the study LAMF among the leaders of SMEs for the views, attitudes and practices of decision makers in the region. Read the rest of this entry »

Basics of a master budget

The budget relates to the production plans of a company and in addition is a tool that allows us to measure the performance of management. In turn quantifies the plans so as to assess the extent to which objectives are accomplished.

The use of the budget also includes government organizations, nonprofit organizations and individuals. Examples are household budgets that are based on monthly income, wages or salaries and are worn in such a way to meet needs.

The administrator uses the budget as a tool that allows you to have an order for the planning and control efforts related to increasing production efficiency in management. This increased efficiency is not only an increase in business productivity that will result in the ability to place products with lower unit costs and be more competitive on the cost side.

The master budget is one that summarizes the activities that are planned in an organization such as sales, production, distribution and finance, becoming a formal and quantitative expression of the company’s plans.

The revised accounting system is one of the most important tools for companies are they large or small. This or plan is accompanied by a book which handles all accounting is economic values of the companies.

A revised chart of accounts is not only handled in a company but they also represent a country’s economic life. So the use of this and the books are also addressed by ministries of a country, thus bringing the country’s economic balance.

The accounting books of a revised plan are those where businesses register in an orderly, analytical and justified all trading operations have been conducted.

With the revised accounting system can meet all the economic and financial situation is a business. You can get the results we have had in certain periods of time. These are to determine whether gains or losses occurred.

The books of account or a revised accounting system is the main tool for good management of a company or business, which provides support for the leaders to take decisions.

The revised accounting plan review allows the employer to determine which is the daily economic size of your business or company. Also by this also can determine the growth of the company.

If you want to have all the economic movement of a company and to determine as soon as it enters and leaves this is necessary to have a book or an accounting review. In this way we have all the economic under control.

Economic crisis and recession brought good things as well. Focuses on the positive aspects of a situation like that can help us overcome the difficult times easier. These are some positive things that can be found in a recession.

1. People save more money. As times are hard people start tightening their belts and start saving for tomorrow as far as they could.

Living in Tomorrow’s function becomes much more important than living for today.

2. People tend to focus on their debt. Debt can be overwhelming in the best case; worst case is not a good thing to have during a recession.

Therefore, one of the first things many people do is eliminating as much debt as possible.

3. People find ways to cut costs. Higher cost of living increases, many people managed to make ends meet.

Reducing the cost becomes a very important exercise for many people. You will be amazed at how easy and automatic that a saver.

4. The people become more risk averse. Risk can be a good thing, but you can also become a problem.

Anyone who has run up huge credit card debt knows that this is true. However, in a recession people control their spending and take fewer risks. Read the rest of this entry »

Another is the Islamic philosophy of universal brotherhood and equality of man as creator of it and parents are the same. Therefore, the distinction between race, caste, faith to do, race does not suffer at all costs. This approach has led the people of the cooperation and participation in all activities, which deceive and get the other scam. Another aspect of Islamic philosophy is the belief in recent days after death. In human life after death, is responsible for his actions on Earth. The implications of this belief is that the economic decisions must be made in the world according to set rules Allah be evaluated. These are the points that differentiate Islamic revolutionary economic liberal, capitalist, imperialist, and the general public, the communist economic system, and usury, class struggle, the economic system of dictatorship of the state. Islam builds a fairer world in which the Holy Spirit eternal concepts.

Poverty
Mal any economy is poverty. The presence of hand begging in the economy, industry leaders decades ago. midst of poverty is much more on the challenges of the modern world. Effects of poverty are not confined to the hungry poor people only, but apart from hunger, suffering from limited resources, lack of access to quality education that leads them disabled for demanding careers requires several years long learning. The lack of nutritious food in the moral development of the poorest. Since only limited access to information and knowledge of these markets and opportunities are prevented. All countries and international organizations like the World Trade Organization, the World Bank and Asian Development Bank are working hard, the country and worldwide cooling confidence, or to build. World Bank mission to reduce global poverty is described and improvement of living standards. The General Council has said that the United Nations, October 17 International Day for Poverty Eradication. This demonstrates the seriousness with which poverty as a problem

But questions will find 6.1 billion people in over one billion people living on less than a dollar a day and about 3 billion less than $ 2 per day. Can 74% of total revenues have caused the world is divided by 20% of the global elite. It is encouraging to see that there are countries whose national income less than $ 800 and the morals of children under five, children above 26%. It is worrying to note that 110 million school-age children not attending school and 60 percent of them are girls.

The fact that the company can choose when calculating their costs, can lead to the information used is obtained a posteriori, or come preset in advance, that is, a priori. This will make the actual costs may be obtained or standards, being able to speak, therefore, historical cost systems and systems or actual default or standard cost.

Corporate governance is based on the realization of goals, the selection of specific policies to achieve them and, ultimately, the planning of economic activity, with subsequent control.

Indeed, all of comparing a standard control with a reality as the only means of establishing value judgments. A cost is only “expensive” if you first define what is meant by “normal.”

Cost Accounting not only does not avoid the technique of planning, but it reaches its own sense when housed in an ideal vehicle for such planning and control. Read the rest of this entry »

For more than a person does not want, there are always times when a situation or another may be necessary to pay money due to lack of resources or for an emergency. The current economic reality brand that more and more people, even the most sensible when it comes to managing your money, look into financial problems. This forces them to seek external funding as loan money that allows them out of trouble if only momentarily.

But before asking for loans of this kind must be borne in mind that if not careful can end up causing more problems than they solve, as they are often expensive financial products. For that reason must analyze their situation very well before making the application and sign a contract.

First of all, before applying for a loan of money, carefully study your financial situation and determine if a loan of this type will be the real solution to their financial problems. While the loan money can be useful in certain situations, should be taken as a last resort because in most cases, the money back with interest far exceeds the loan amount and we run the risk of worse off, leaving even more debt than before.

It is important to be realistic and know what their actual capacity of debt so you know if at that time is able to successfully address such a debt. Also, think about the real reason to borrow and ask yourself this question: Is it indeed a need or a whim? Think that if the loan money is only to pay a whim, the reality is that it is better to wait for another time when we can afford with their own resources without borrowing. There are few stories of people that want to finance a new car or other luxury item that did not need, resorted to lend money then let them drown financially.

JAKARTA : The government began to worry about the negative signs of Homeland export performance in line with the strengthening of the rupiah against the U.S. dollar which had reached 15% in the last four months.

Finance Minister Sri Mulyani Indrawati said the development issue of the debt crisis in Greece implications for the country’s economic deterioration in the European region. It is also influential on the world economic recovery, especially in terms of exporting and importing goods.

“For Indonesia, the ratio of exports to imports is still showing a positive rate, although there will be a negative sign of the growing appreciation of the rupiah,” he explained in the National Development Planning Consultation event in 2010, today. Read the rest of this entry »

Business plan and start the right business is the management tool for you to prepare. Would you have done a good job, he has become more than exercises, has been the foundation for your creation. It will be a guide that can you work, adapt and adjust to changing business conditions around.

If you’re going to start a business you need a document that aims to explain your business idea and how you plan to run your business. Business plan primarily a tool for yourself, but also useful when you need to present your ideas to banks, partners, governments, and the like. Anyone who bet money to know what they are facing. Write short, and let the additional information available on inserted.

How to develop a business plan?

Develop a business plan involving the creation and “drive” the company on paper. The plan makes it easier to see the relationship between products / services, markets and resources. you get the necessary illustrations and decisions before you actually begin to act. Read the rest of this entry »