INTRODUCTION
The purpose of this topic is to study how the gross national product is measuring the economic activity of a nation. The concept is defined and explained. The components are analyzed in the expenditure and the income approach, and the two are reconciled. Adjustments for inflation are presented. The concept is compared to other measures of economic welfare.
NATIONAL INCOME ACCOUNTING
National income accounting is used to determine the level of economic activity of a country. Two methods are used and the results reconciled: the expenditure approach sums what has been purchased during the year and the income approach sums what has been earned during the year.Just as firms need to know how well they are doing, so does a country. National income accounting provides the statistics to determine if the economy is encountering difficulties.
GROSS NATIONAL PRODUCT
The gross national product is the sum total of all final goods and services produced by the people of one country in one year. The GNP is a flow concept. It can be calculated with either the expenditure approach or the income approach. The GNP excludes intermediate goods, second hand sales as well as financial transactions. The GNP is a money amount and must be adjusted for changes in the value of money.The goal of gross national product is to measure the physical activity of a nation by adding all the different types of productions: production of cars, production of computers, etc... But adding cars and computers does not make much sense. Therefore, the prices of these goods are summed.
GROSS DOMESTIC PRODUCT
The gross domestic product is the sum of all the final goods and services produced by the residents of a country in one year. Summing the production of residents (rather than nationals as in GNP) gives often a more accurate picture of the level of activity in a country.The difference between GDP and GNP is net unilateral transfers and factor income of foreigners.Countries which have many foreign firms operating within their territory, have a gross domestic product larger than the gross national product. On the contrary, countries, such as the United States or Japan, which have firms operating in foreign countries, have a gross domestic product smaller than the gross national product (the net factor income from foreigners is negative).INTERMEDIATE GOODSIntermediate goods are goods which are made part of some final good. For instance, tires are intermediate goods when they are part of a car. Tires are final goods when they are sold separately as replacement parts. Incorporating intermediate goods to form a final good adds value to that good.Almost all metals and crude oil are part of intermediate goods: they are not counted separately, but as part of the final good in which they are incorporated. Tires purchased by customers to replace used tires are final consumption; but, not the tires installed on new cars: these are intermediate goods.VALUE ADDEDGNP can be calculated by adding up all the value added from the intermediate goods (the result is exactly the same). Countries with tax systems based on value added taxes prefer this method.The work performed to assemble a car from its many components (such as windshield, tires, motor, and so on), is the value added in a car assembly plant. Such a value added can also be calculated by taking the difference between the selling price and the costs of all material and goods used in the product sold.
EXPENDITURE APPROACHGDP can be calculated as the sum of all expenditures: personal consumption expenditure (C), gross private domestic investment (Ig), government purchases (G), and net exports (Xn).GDP = C + Ig + G + Xn.The expenditure approach sums all that is purchased: in a sense, it is equivalent to the income approach because purchases are only possible if income is present.
PERSONAL CONSUMPTION EXPENDITURE
Personal consumption expenditure is what households buy (except houses). It is made of durables (cars, appliances), nondurables (clothing, food) and services (haircuts, doctor visits, airline tickets). A convention is made on nondurables to be all items which last less than a year, including clothing. Nondurables expenditure is the most stable component of personal consumption expenditure.People buy all kinds of goods and services. Services are, for example, transportation, communication, banking and insurance. Durable goods include furniture, appliances, equipment, cars, etc.. Nondurable goods are all items which would normally be consumed within a year: food, fuel, stationary, and by convention also clothing.
GROSS PRIVATE DOMESTIC INVESTMENT
Gross private domestic investment is made of 1) new construction, 2) new capital (machines, trucks and equipment), and 3) changes in inventory. It excludes investment made by government and investment made outside the country. New construction includes all forms of new building, be it for rental purpose or for private residential purpose. Changes in inventory captures the goods produced in one year and sold in future years.When a company builds a plant and installs machinery and equipment: that is an investment, i.e. an increase in capital. By convention, a private house is considered an investment. The reason is that a private house may later be rented and it is not possible to know for which purpose, rental or private use, a house is built in the first place.
CAPITAL CONSUMPTION ALLOWANCE
Capital consumption allowance is the part of new capital produced during one year, which is needed to replace the capital used up during that year. It is also known as depreciation. Capital consumption allowance (CCA) is equal to the difference between gross investment (Ig) and net investment (In):CCA = Ig - In.All machines and equipment used to produce other goods, are subject to some wear and tear. Part of capital goods production must be devoted to replace this wear and tear. Otherwise, the productive capacity of a nation would be depleted. This replacement of the capital used is capital consumption allowance.
NET INVESTMENT
Net private domestic investment is equal to gross private domestic investment less capital consumption allowance. It is the most sensitive component of GDP. When it is negative it implies that the capital stock is being depleted and production has to be decreasing. Economic growth is implied in a positive net private domestic investment.The productive capacity of a nation will increase only if net investment is positive. This can easily be verified at the level of a single plant: the number of new machines installed in any given year must be greater than the machines that have been used up during that year.
GOVERNMENT PURCHASES
Government purchases combine all goods and services bought by all forms of government: form paper clips to bridges and hospitals. This does not include government payment for work or any transfer payment.As a single entity, the government is the largest purchaser in a nation. It buys all kinds of products: from hospitals and bridges, to paper and pens (so we can fill out all these forms). It also spends large sums on services such as those provided by firemen and policemen.
NET EXPORTS
Net exports is the difference between total exports and total imports. It is equal to the trade or merchandise balance of payments. When imports exceed exports (and the balance of payments is in deficit), the amount shown as net exports is negative.American exports, such as computers, airplanes and various crops, are all items produced which are sold to foreigners. Imports, on the contrary, are items produced by foreigners on which Americans spend some of their income.
INCOME APPROACH
The income approach sums all income derived from productive activities.If we compare a nation to a business, the income approach would be an allocation of the funds generated from the sales of one year (net of costs of intermediate goods), to the various expenses and retained profit.
NET NATIONAL PRODUCT
Net national product (NNP) is equal to gross national product minus capital consumption allowance:NNP = GNP-CCA.Net domestic product is likewiseNDP = GDP - CCA(As above, the difference between NNP and NDP is net factor income and unilateral transfers to foreigners.)The production which has been devoted to maintaining our stock of means of production, that is the capital consumption allowance, must be deducted to see what new consumption and income occurred during the year.NATIONAL INCOMENational income (NI) is equal to net national product minus indirect business taxes:NI = NNP - (ind business taxes)National income is also equal to the sum of salaries, rent, interest, profit and proprietors' income.National income is the sum of all forms of gross income, similar to the gross salary appearing in a paycheck of an employee, that is before various taxes and other deductions are taken out.
INDIRECT BUSINESS TAXES
Indirect business taxes are all the various sales and excise taxes.Sales taxes are the largest part of indirect business taxes. These sales taxes are paid as an addition to the price when a purchase is made. They are passed on to the government by the business that collects them. Thus, these moneys are not part of what is distributed by the firm in the form of income.
PERSONAL INCOME
Personal income (PI) equals national income net of transfer payments. Transfer payments added to national income are: social security and pension payments, welfare and unemployment payments. Transfer payments deducted from national income are: social security contributions, undistributed corporate profits and corporate income taxes.
TRANSFER PAYMENTS
Transfer payments are additions and subtractions to national income to obtain personal income. Additions include social security retirement payments, unemployment benefits and welfare payments. Subtractions include social security contributions, corporate income taxes and undistributed corporate profits.Transfer payments are payments which are not connected to any productive activity. The typical example of a transfer payment is social security: contributions to social security are collected from all those who work and are passed on to those who are retired.
DISPOSABLE INCOME
Disposable income (DI) equals personal income less personal income taxes. Disposable income is distributed between personal consumption expenditure and saving.Disposable income can readily be seen in the paycheck an employee receives from the employer. From the gross salary various amounts have been taken out: taxes and various transfer payments. On the national level, it is just about the same.REAL GDPReal GDP is GDP adjusted for inflation (or change in value of money). The unadjusted GDP is known as nominal or current GDP. The adjustment consists in dividing current GDP by a price index (also known as a deflator).GNP adjusted for inflation is said to be real in the same way as what a paycheck can buy in various goods and services, is the real purchasing power of that salary.PRICE INDEXA price index is constructed by taking the weighted average of the prices of a basket of goods in a given year divided by the weighted average of the prices of the same basket in a base year. A well known price index is the consumer price index or CPI.The consumer price index is simply an average of prices reported by various consumers from different markets during a telephone survey conducted periodically. Such an average of prices is adequately portraying the presence of any inflation.
Saturday, October 29, 2016
developed country definition
A developed country, industrialized country, or "more economically developed country" (MEDC), is a sovereign state that has a highly developed economy and advanced technological infrastructure relative to other less industrialized nations. Most commonly, the criteria for evaluating the degree of economic development are gross domestic product (GDP),gross national product (GNP), the per capita income, level of industrialization, amount of widespread infrastructure and general standard of living.[1] Which criteria are to be used and which countries can be classified as being developed are subjects of debate.Developed countries have post-industrial economies, meaning theservice sector provides more wealth than the industrial sector. They are contrasted with developing countries, which are in the process ofindustrialization, or undeveloped countries, which are pre-industrial and almost entirely agrarian. As of 2015, advanced economies comprise 60.8% of global GDP based on nominal valuesand 42.9% of global GDP based onpurchasing-power parity (PPP) according to the International Monetary Fund.[2] In 2015, the ten largest advanced economies by GDP in both nominal and PPP terms were Australia,Canada, France, Germany, Italy, Japan,South Korea, Spain, the United Kingdom, and the United States.
Macroeconomics
Study whole economics.
Macroeconomics is a branch of the economics field that studies how the aggregate economy behaves. In macroeconomics, a variety of economy-wide phenomena is thoroughly examined such as, inflation, price levels, rate of growth, national income, gross domestic product and changes in unemployment
Macroeconomics is a branch of the economics field that studies how the aggregate economy behaves. In macroeconomics, a variety of economy-wide phenomena is thoroughly examined such as, inflation, price levels, rate of growth, national income, gross domestic product and changes in unemployment
Friday, October 21, 2016
A SMALL BUSINESS MANAGEMENT
Preface
Today, the economy of the country has not been moved yet sophisticated. Domestic production is not enough, and export. In a unit can progress to all progressive. The most important rule management and human resource management, financial management, marketing management, product management, technical management. We work with people like this rule, which is essential is the most human resource management. In the article, study prepared by a group of students the second year of economics that you are reading this is about a small business management. We hope that the document will become the assistant to all readers appear. If the study of research and understanding of our lack or incorrect point any way we please get every suggestion to build constantly.
E-Mail: khornten3@gmail.com
097 20 76 728/096 76 78 105
Acknowledgments
Thank you for CUS Cambodia (CUS), which provided service learning.
Thank you for your parents, we created and pets cared for and sponsored learning so far.
Thank you for professors, all of which strive to teach enlightening to us. Especially Prof. Chrun Spohal , who is a professor of trainers in this subject.
Thank you for the effort spent in discussions suggest.
A SMALL BUSINESS MANAGEMENT
I. Introduction
What is a small business?
A small business is a privately owned and operated business. A small business typically has a small number of employees. In the United States, the legal definition of a small business is determined by the U.S. Small Business Administration (SBA), which sets the criteria to be used by the SBA in making small business determinations. Criteria by the SBA in determining the definition of a small business includes the number of workers employed or annual receipts. The following criteria is used by the SBA to define a small business:
Manufacturing: Maximum number of employees may range from 500 to 1500
Wholesaling: Maximum number of employees may range from 100 to 500
Services: Annual receipts may not exceed $2.5 to $21.5 million
Retailing: Annual receipts may not exceed $5.0 to $21.0 million
General and Heavy Construction: Annual receipts may not exceed $13.5 to $17 million
Special Trade Construction: Annual receipts may not exceed $7 million
Agriculture: Annual receipts may not exceed $0.5 to $9.0 million
The definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. A local bakery that employs 10 people is an example of a small business. A manufacturing facility that employees less than 500 people is an example of a small business.
II. Management
What is management?
Management plays a vital role in any business or organized activity. Management is composed of team of managers who have charge of the organization at all levels. Their duties include making sure company objectives are met and seeing that business operates efficiently. Regardless of the specific job, most managers perform four basic functions:
o Planning
o Organizing
o Directing
o Controlling
III. Planning
Planning is one of the most important project management and time management techniques. Planning is preparing a sequence of action steps to achieve some specific goal. If you do it effectively, you can reduce much the necessary time and effort of achieving the goal.A plan is like a map. When following a plan, you can always see how much you have progressed towards your project goal and how far you are from your destination. Knowing where you are is essential for making good decisions on where to go or what to do next.One more reason why you need planning is again the 80/20 Rule. It is well established that for unstructured activities 80 percent of the effort give less than 20 percent of the valuable outcome. You either spend much time on deciding what to do next, or you are taking many unnecessary, unfocused, and inefficient steps.Planning is also crucial for meeting your needs during each action step with your time, money, or other resources. With careful planning you often can see if at some point you are likely to face a problem. It is much easier to adjust your plan to avoid or smoothen a coming crisis, rather than to deal with the crisis when it comes unexpected. Planning is followed the SMART : Specific, Measureable, Achievable, Really, Time.
IV. Organizing
Organizing is a systematic process of structuring, integrating, co-ordinating task goals, and activities to resources in order to attain objectives. Organizing (also spelled organising) forstructure is the act of arranging elements following one or more rules.Commonly, anything is considered organized when it looks like everything has a correct order or placement, and is in a specific location. But it's only ultimately organized if any element has no difference on time taken to find it. In that sense, organizing can also be defined as to place different objects in logical arrangement for better.
V. Leading
Importance of leading in ManagementLeading is the third element of management, one of the management core functions. Here, a manager spends time connecting with his/her employees. Leadership skills include inspiring, communicating, motivating, and influencing employees for efficient output. All managers are not leaders, but all leaders are managers. An employee follows all the directions a manager gives because they have to, because managers have all the legitimate powers. But an employee voluntarily follows the direction of a leader because they have believed in him/her..
VI. Controlling
Controlling consists of verifying whether everything occurs in confirmities with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions
According to Brech, “Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs.”
According to Donnell, “Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on right course.”
Controlling has got two basic purposes
It facilitates co-ordination
It helps in planning
Features of Controlling Function
Following are the characteristics of controlling function of management-
Controlling is an end function. A function which comes once the performances are made in confirmities with plans.
Controlling is a pervasive function- which means it is performed by managers at all levels and in all type of concerns.
Controlling is forward looking- because effective control is not possible without past being controlled. Controlling always look to future so that follow-up can be made whenever required.
Controlling is a dynamic process- since controlling requires taking reviewal methods, changes have to be made wherever possible.
Controlling is related with planning. Planning and Controlling are two inseperable functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless. Planning presupposes controlling and controlling succeeds planning.
VI. Conclution
Every business can not be without management stragtegy. The good way to manage your business, is applied for all business. If you want to develop your business, you should know how to manage its. Small business would like small stragtegy or low stragtegy. Large business would like high stragtety to manage its also. In the other hand, a country can be developed country if this country have a high managemet ether.
Today, the economy of the country has not been moved yet sophisticated. Domestic production is not enough, and export. In a unit can progress to all progressive. The most important rule management and human resource management, financial management, marketing management, product management, technical management. We work with people like this rule, which is essential is the most human resource management. In the article, study prepared by a group of students the second year of economics that you are reading this is about a small business management. We hope that the document will become the assistant to all readers appear. If the study of research and understanding of our lack or incorrect point any way we please get every suggestion to build constantly.
E-Mail: khornten3@gmail.com
097 20 76 728/096 76 78 105
Acknowledgments
Thank you for CUS Cambodia (CUS), which provided service learning.
Thank you for your parents, we created and pets cared for and sponsored learning so far.
Thank you for professors, all of which strive to teach enlightening to us. Especially Prof. Chrun Spohal , who is a professor of trainers in this subject.
Thank you for the effort spent in discussions suggest.
A SMALL BUSINESS MANAGEMENT
I. Introduction
What is a small business?
A small business is a privately owned and operated business. A small business typically has a small number of employees. In the United States, the legal definition of a small business is determined by the U.S. Small Business Administration (SBA), which sets the criteria to be used by the SBA in making small business determinations. Criteria by the SBA in determining the definition of a small business includes the number of workers employed or annual receipts. The following criteria is used by the SBA to define a small business:
Manufacturing: Maximum number of employees may range from 500 to 1500
Wholesaling: Maximum number of employees may range from 100 to 500
Services: Annual receipts may not exceed $2.5 to $21.5 million
Retailing: Annual receipts may not exceed $5.0 to $21.0 million
General and Heavy Construction: Annual receipts may not exceed $13.5 to $17 million
Special Trade Construction: Annual receipts may not exceed $7 million
Agriculture: Annual receipts may not exceed $0.5 to $9.0 million
The definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. A local bakery that employs 10 people is an example of a small business. A manufacturing facility that employees less than 500 people is an example of a small business.
II. Management
What is management?
Management plays a vital role in any business or organized activity. Management is composed of team of managers who have charge of the organization at all levels. Their duties include making sure company objectives are met and seeing that business operates efficiently. Regardless of the specific job, most managers perform four basic functions:
o Planning
o Organizing
o Directing
o Controlling
III. Planning
Planning is one of the most important project management and time management techniques. Planning is preparing a sequence of action steps to achieve some specific goal. If you do it effectively, you can reduce much the necessary time and effort of achieving the goal.A plan is like a map. When following a plan, you can always see how much you have progressed towards your project goal and how far you are from your destination. Knowing where you are is essential for making good decisions on where to go or what to do next.One more reason why you need planning is again the 80/20 Rule. It is well established that for unstructured activities 80 percent of the effort give less than 20 percent of the valuable outcome. You either spend much time on deciding what to do next, or you are taking many unnecessary, unfocused, and inefficient steps.Planning is also crucial for meeting your needs during each action step with your time, money, or other resources. With careful planning you often can see if at some point you are likely to face a problem. It is much easier to adjust your plan to avoid or smoothen a coming crisis, rather than to deal with the crisis when it comes unexpected. Planning is followed the SMART : Specific, Measureable, Achievable, Really, Time.
IV. Organizing
Organizing is a systematic process of structuring, integrating, co-ordinating task goals, and activities to resources in order to attain objectives. Organizing (also spelled organising) forstructure is the act of arranging elements following one or more rules.Commonly, anything is considered organized when it looks like everything has a correct order or placement, and is in a specific location. But it's only ultimately organized if any element has no difference on time taken to find it. In that sense, organizing can also be defined as to place different objects in logical arrangement for better.
V. Leading
Importance of leading in ManagementLeading is the third element of management, one of the management core functions. Here, a manager spends time connecting with his/her employees. Leadership skills include inspiring, communicating, motivating, and influencing employees for efficient output. All managers are not leaders, but all leaders are managers. An employee follows all the directions a manager gives because they have to, because managers have all the legitimate powers. But an employee voluntarily follows the direction of a leader because they have believed in him/her..
VI. Controlling
Controlling consists of verifying whether everything occurs in confirmities with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions
According to Brech, “Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs.”
According to Donnell, “Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on right course.”
Controlling has got two basic purposes
It facilitates co-ordination
It helps in planning
Features of Controlling Function
Following are the characteristics of controlling function of management-
Controlling is an end function. A function which comes once the performances are made in confirmities with plans.
Controlling is a pervasive function- which means it is performed by managers at all levels and in all type of concerns.
Controlling is forward looking- because effective control is not possible without past being controlled. Controlling always look to future so that follow-up can be made whenever required.
Controlling is a dynamic process- since controlling requires taking reviewal methods, changes have to be made wherever possible.
Controlling is related with planning. Planning and Controlling are two inseperable functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless. Planning presupposes controlling and controlling succeeds planning.
VI. Conclution
Every business can not be without management stragtegy. The good way to manage your business, is applied for all business. If you want to develop your business, you should know how to manage its. Small business would like small stragtegy or low stragtegy. Large business would like high stragtety to manage its also. In the other hand, a country can be developed country if this country have a high managemet ether.
How to write Acknowledgments
Acknowledgments
to thank those who annex kinro our all there:
thank you for your parents, we created and pets cared for and sponsored learning so far.
thank you for CUS Cambodia (CUS), which provided service learning.
thank you for professors, all of which strive to teach enlightening to us. Especially Prof. lock Satan Palmer, who is a professor of trainers in this subject.
Thank you for the effort spent in discussions suggest.
to thank those who annex kinro our all there:
thank you for your parents, we created and pets cared for and sponsored learning so far.
thank you for CUS Cambodia (CUS), which provided service learning.
thank you for professors, all of which strive to teach enlightening to us. Especially Prof. lock Satan Palmer, who is a professor of trainers in this subject.
Thank you for the effort spent in discussions suggest.
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