Archive for the ‘Economic Activity’ Category
Depreciation .- This word has several meanings economy. Named to the fact of paying just debts, and to a procedure that is reimbursed, by means of partial deliveries and regular communications, capital employed in industry or received loan, and is also called bonus depreciation, amortization or alone, to each of the many or sums devoted to that object. -It is noteworthy, as this is committed impropriety, saying repayment of capital, precisely when it is available again, it dies and dies is not a capital, but on the contrary, a debt. Finally, amortization means the state of that property has been awarded perpetually certain owners, who are deprived, while the power to alienate.
As a means of capital formation, depreciation has the great advantage of allowing you to use the powerful force of compound interest, which can be accrued on the cumulative sums, but only an effective remedy, when they meet two conditions of a long period of time and product-placement calculation determines, in each case, the annual amount and the time or interest, which are needed to get some capital ..
He wanted to apply to the payment of public debt amortization for the interest compound; pore results did not correspond to the high hopes based on this idea, for lack of the conditions listed above. Governments believed that they could enjoy the benefits of that system, and created to achieve the so-called Amortization boxes. The loan contract stated a fixed annual amount, usually 1 per 100, and delivered to the Fund, which invested in titles, taking advantage of market fluctuations, then the interest charged in these securities and should be employed in conjunction with the annual budget on acquiring new ones to own them all. So a loan of 100 million to 5 100, 6 million per year indicated in the budget to a repayment to the Fund, and after the first year were no more than 99 million in the hands of creditors at the end the second year, Cash had also received a million for the interest of securities, acquired in the first, and continue to be paid as if they were in circulation, and used all other securities, in the third year I had a million fixed plus interest for the previous two, and in this way, with 1 in 100 year and the interest interests in a period of thirty-six years – that is, apparently 36 million – the Fund should acquire all the securities loan debt extinguished.
Basic economic concepts
- Benefit : results from the difference in costs and income from economic activity, if the expenses are higher losses will occur.
- Well , good is whatever satisfies a need and has a value .
- Service : is a benefit intended to meet a personal or social need but not to the production of an object.
- Cost of living and inflation : the cost of living is the minimum amount of expenditure necessary to obtain the goods and services; to calculate the value of adding a set of products and this result defines the CPI price index consumption. Rising commodity prices is what we call inflation.
- Investment and speculation : investment is the amount of money spent to start a business or maintain and improve it in order to make a profit. When you get a quick profit of a business based only on the price of goods it comes to speculation.
- Market : The set of consumers who demand goods and services to all the producers that offer them.
- Production and productivity , called production goods and services generated by an economic activity. The relationship between employees and the media produced determines productivity. If you get high productivity using limited means, it is said that the production is high. When used in many ways but productivity is low, productivity is low.
- Gross domestic product (GDP) and GDP per capita: GDP is the total value of goods and services produced in a territory for a year. GDP reflects the wealth or income generated in that territory, but to know what the average income or wealth of its population, ie GDP per capita, divide the GDP of the territory concerned by the number of its inhabitants.
Economic activity .-is the faculty that man has to work on things in nature to apply to the satisfaction of their needs, and is manifested by the whole order of the efforts and hard work to achieve that goal.
The activity is one, as one man’s end, and only we can make it class and distinction, calling it a moral, scientific and economic, etc. After having decomposed the total human fate in as many different aspects. This consideration is important because it shows the error of those who claim that economic acts are outside the general laws of activity and governed by a unique principle: profit, interest, etc.-economic activity, as addressed to a particular purpose, has settled into its application to the terms thereof, but the difference or variety of development does not touch, can not alter what is fundamental and relates to the subject and criterion of all human behavior.
Economic activity is subordinated to reason, is free, responsible, legitimate phone is the idea of absolute good applied to the order of material goods, and must be exercised with the sanction and the consent of the religious principle of moral duty, legal obligation and knowledge científico.-The self-love, interest and convenience are, here as always, nothing more than secondary principles.
The natural laws that govern the activity, not an efficiency gain special or different character, when it refers to the economic order are not fatal, not run by themselves, remain voluntary compliance and not enough to invoke them, but it is necessary obedecerlas. Economy-why not be reduced to the investigation of those laws to be asked to let them do, rather, is the main mission of our science in making the life accommodate to natural laws, determining what should be done to meet them.
Agio speculation . – Speculation, which is to negotiate using the swings and differences in the prices of any class of goods, as well as cash, documents of credit and debt securities públic. He says especially the remuneration payable in different currencies and exchange for the banknotes of the Bank for cash.
Savings .-is a form of employment or consumption of wealth, which is not to apply the satisfaction of current needs only part of the benefit or compensation earned in the industry, devoting the rest to increase the means available for new productions and to the care of future needs.
Consideration of the future, man’s privilege over all other finite beings is the foundation of the virtue of saving, which equates to the economic order of sobriety and prudence ..
Rental – Proponenn some economists this word to mean, generally, the remuneration of capital or is the goal that they perceive on the loan, but writers want it to mean only that corresponds to compensation as a capital of what are called fixed.
Since the use and the distinction distinguishes naturally between the remuneration of fixed capital and working capital, it seems only logical to adopt a generic, should be of interest to designate the price paid for the use of capital under any form, then applying the rental or lease for fixed capital-land, machines, etc., and the revenue-to-money circulating capital, raw materials, etc.
Natural agents . – Under this name, although somewhat inappropriately, generally accepted, understood the things of nature, useful to mankind, on which rests the action of economic work.
Not everything that supports human life exists, for among the objects around us there are some who are against us, we even produce harm and our death. These objects can not be considered as natural agents, but not fall into that category all things that serve our needs.
Nature provides us means of two kinds: some are called continuous, in close communication with our body and use it without any effort on the activity, these are: air, light, heat and others who say discrete, separate of necessity, which must be applied to it by ourselves, like minerals, plants and most of the beings in the physical world.
Discrete media, such as charitable qualify some expensive because it requires as a condition of employment of labor, are they who are the natural agents in economics. However, it also means free use continuous or discrete and become natural agents, therefore, when applied to some services that do not pay them spontaneously: the air, used as the mill motor and the boat, or to ventilate a mine, the light for photography, are in this case.
In response to the different nature of the natural agents, often divided by economists in appropriate and inappropriate. The ones in effect, land mines, animals, etc.,-Susceptible not only to property but it is a condition necessary for its use, while others-the sea, electricity, etc.,-domain or reject any unique application, it would be useless, moreover, as there are in unlimited quantity and can meet at par all needs .
It’s called economic activity to any process by which we obtain products, goods and services that meet our needs.
Economic activities are those that allow the generation of wealth within a community (city, region, country) through the extraction, processing and distribution of natural resources or some service , having as its goal the satisfaction of human needs.
Each community is that their resources are limited and therefore to meet these needs must make a choice that incorporates an opportunity cost .
The economic activities cover three stages: production , distribution and consumption .
As the production depends on consumption, economics analyzes the behavior of consumers.
Some economic activities are agriculture , the livestock , the industry , the trade , the communications , among others.
The countries are used specifically in an economic activity which allows to classify, according to production capacity and efficiency of such activity will generate wealth.
Is it true that honesty is required?, if not a right action required?
Maybe it’s just wrong people to ask others to be honest in business. In the business world itself there are certain laws that are used and if the principle of “use as little energy as possible to achieve maximum profit”, it would be contrary to honesty, but it will still be acceptable if the person running it properly and not hurt the party others.
A child falls and their parents spontaneously stated “Oh, never mind! boy, do not hurt too! Do not cry, yach!”
I think this is one of the parents was in response to these problems, there may be other alternatives that we can use for example “Oh, yes falling, where the sick, here given for no pain medication, “with the response so we educate children to understand a problems, that she fell and hurt and need to be treated and we do not lie.
What about the truth?
Truth can not be denied, must be carried out with absolute. A trader said that fortunately did not sell the goods, of course, can be seen traders are not honest because it could be that traders have taken advantage or maybe he has got a bonus from the factory but he did not say it.
When a student in 1994-1998 I had a friend whose parents own a business kos-kos’s. Do not know exactly how much room in a boarding house, lodging house, but it seems kos-kosan pretty good at governance. Most who live there are students UPH (Universitas Pelita Harapan) and it seems there are some young employee. I do not know exactly what their job, which I know they only have a business of kos-kos. And my knowledge, this family includes the well-off families in our neighborhood.
Now I just realized, that they are investing property for the purpose of Cash Flow. Every month they will get money from the lease of the kos-kos. Just imagine if the house there are 10 rooms (at that time I remember her level and in the back is big enough), and each room pay Rp 500,000, – only. So in a month would generate USD. 5 million net of operating expenses such as Rp 500,000, – then the net income is Rp. 4.5 million dollars. Now this is called the Cash Flow. Every month they will receive USD 4.5 million dollars, a year to Rp 54 million rupiah. Usually the price will continue to rise and mean income will also rise each year, for example, from Rp 500,000, – per room to Rp 1 million per room in a few years, then any income will also rise.
Total refined sugar needs for food and beverage industry by 2.2 million tons per year. Of that amount, about 1.2 million tons of refined sugar is the need for large industries, while the remaining amount of 1 million tons is the need for food and beverage industry of small and medium scale.
“Until the end of July the amount of refined sugar that has been filled for the industry amounted to 900,000 tonnes,” said Chairman of the Association of Indonesian Food and Beverages. That is, until the end of the year, food and beverage industry still lacks the supply of refined sugar as much as 1.3 million tons.
Adhi explained, in the months regular refined sugar demand for food and beverage industry of small and medium scale around 100,000 tonnes per month. “If before the fasting and Idul Fitri sekiar needs to increase to 150,000 tons per month,” he said.
Adhi hope, producers can realize the import of refined sugar raw sugar in accordance with the schedule specified. For if the producers did not immediately realize the import of raw sugar, he worried about stock shortages of refined sugar for food and beverage industry.
Notes only, the Ministry of Commerce has issued permits to import raw sugar refined sugar 8 companies are also pretty raw sugar importers. The eight companies are PT Makasar Tene, PT Duta sugar International and PT Dharmapala Usaha Sukses, PT Angels Product, PT Jawamanis Refined, PT Sentra usahatama Jaya, PT Permata Utama Sukses World. PT Sugar Labinta. Total raw sugar import permits already issued are to reach 526,240 tons.
During the year 2010, the food industry faces several obstacles. Biggest obstacle, especially concerning the problem of illegal products are still rampant in the market and the presence of imported products.
“In the year 2010 was indeed not much love big contribution, but if medium and large industrial average could be up to 15 percent growth. But this is not significant because 90 percent of the food industry that the small industries ..
In addition to constraints of small industries that are still not able to contribute significantly to economic growth, there are five other constraints faced by the food industry throughout 2010. First, associated with raw material policy. “For example, some raw materials duty-entry of the above 5 percent, while the finished product until the zero point one percent,” said Franky.
This, recognition, making the food industry in dire need of raw materials became deeply affected than other industries. The second constraint related to the policy of Food and Drugs Supervisory Agency (BPOM). “The policy of separate picture BPOM so if the product imported into, his permission is not difficult, the cost could be around USD 3-USD 4 million and the process is also fast. What about the domestic industry? Permission orbit are still long, the process is clearly inhibited,