International Environment of business

Digitization, changing customer behavior, tighter regulatory requirements, saturated insurance markets, predatory competition, emergin risks (cyber, hurricane season etc. )

dormant, early, sustained growth, mature

political stability, property rights, freedom of enterprise, contract enforcement (afghanistan, iraq)

low income and wealth, insufficient scale of insurable risk, macroeconomic instability, market restricitons (bolivia, egypt, mongolia)>

Income, scale, financial sector development, enforcement, judicial efficiency and transparancy (peru, india, el salvador)

Insurance for low-income people. Only a small fee is payed and itr allows them to recover from a big shocks.  It  protects low income families to fall back into poverty and to take risks (farmer grows crops with bigger risks but also bigger risks because he is protected when there is a bad harvest)

Low income communities that are shut out of financial services like saveing account or mortgages because they cant afford premiums or fees

Y= AF (N, L, K, H)

Output=n Technology (Land, Labor, Capital, Human resource)

Innovation + Entrepeneurship + Institutions and Policy

By providing Infrastructure (education, health, access to water, sanitation, transportation, energy, information and communication technology, capital) and by defining the rule of the game (protection of IP, rainforest)

1. Private ownership

2. Availability of production factors

3. economic freedom

4. legal protection of property rights

5. political stability, rule of law, and regulative quality

6. (democracy)

First Generation - Mao Zedong (1949-1976)--> failure of great leap forward, horrid death tooll of over 20 million people dying of hunger, cultural revolution--> 7 million people to working camps for reeducation

Second Generations - Deng Xiaoping (1978-1989) -> economic liberalization, global trade as the way out of national poverty, political suppression (tiananmen-incident)

Third Generation: Jiang Zemin (1989-2002)--> massive economic growth since 1990's, 

Fourth Generation: Hu Jintao (2002-2012)--> even more export driven growth, decline of poverty rate, rise in scientific field$

Fifth Generation: Xi Jingping (2012-today)--> financing major public infrastructure deals in southeast Asia, Africa, Latin America (more loans than world bank)

China's industrial masterplan: turn the country into a "manufacturing superpower" over the coming decades (creation of publicly and privatelyfunden innovation centers, more private and public research subsidies, large and low-interest loans from state-owned investment funds, assistance in buying foreign competitors)--> great business opportunities for foreign firms because of enormous increase of smart manufacturing products--> in long term challenge for the economic primacy of the current leading economies and international corporations

the rise of CHINA

Movement along the demand curve

shift in the demand curve

Price is lower comparedto similar products-->Demand increases-->D-Curve moves to the right

Income remains the same but price falls-->demand increases-->d-curve moves to the right

Income, prices of related good(substitutes and complements), tastes and fashion, number of buyers (population), expectations of consumers

claim that the quantity supplied of a good rises when the price of the good rises.

increase in supply

Point at which the supply and demand curve intersect

supplied quantity is bigger than quantity demanded(above equilibrium)

supplied quantity is smaller than demanded quantity(below equilibrium)

area below demand curve and above the price (amount that buyer is willing to pay - amount they actually paid)

amount that seller is paid for a good - seller's cost

producer that needs a smaller amount of intputs to produce a good

the producer with smaller opportunity cost of producing a good has a comparative advantage in producing that good