Chapter 1. Measuring economic performance Part I. Economic performance.When monitoring of overall performance, it means focusing on the macroeconomic aggregates. ‘Aggregate’ in this case mans ‘total’: for example, total spending in an economy or a total supply.
Macroeconomics studies the interrelationships between variables in economy at an aggregate level. Economics variables need to be measured all the time to have an up-to-date information about the current economic situation. Economists use values to measure the variables. There are two types of values:
• Nominal
• Real
Nominal value bases only on current prices, while real value also includes changes of prices through time.
Part II. Inflation
Inflation is a sustained increase in the general price level and is measured by the consumer price index (CPI), which is one of the most important price index in the UK. In other words, the rate of inflation is measured by percentage change in the level of consumer prices. Also there is an alternative measurement of inflation – retail price index (RPI), which used to be the traditional measurement of inflation in the UK for many years. RPI is a measure of the UK’s average level of prices. Part III. Unemployment
Unemployment monitors the number of people who are looking for work, available for work, not in work and are claiming for the benefit – Jobseeker’s Allowance. The number of people claiming for this benefit each month is called claimant count of unemployment. Another way to measure unemployment is ILO (International Labour Organisation) unemployment rate, which is based on Labour Force Survey. ILO unemployment rate measures the percentage of the workforce who are without jobs, but willing to work, available for work and looking for work.
Part IV. The circular flow of income, expenditure and output
GDP plays a key part in the economy of every country. It is the total market value of all final goods and services produced within the country in a given period of time. It can be measured using the following model.
The circular flow of income, expenditure and output is a simple model representing actions happening in an economy and describing the relationship between these three key variables. According to this model, there are three ways of measuring the total level of economic activity in an economy during a period of time:
• By total income
• By total expenditure
• By total output produced
There are three leakages from a country’s economy:
Savings (S), Imports (M), Taxation (T).
There are three injections into a country’s economy:
Investment (I), Government expenditure (G), Exports (X).

Chapter 2. Aggregate demand and aggregate supply
Part I. The components of aggregate demand
AD = C + I + G + (X – M), where:
• C is Consumption
• I is Investment
• G is Government expenditure
• X is Exports
• M is Imports
Part II. Consumption
Consumption is the largest component of aggregate demand.
C = f (Y)
Consumption is a function of income.
Disposable income is income after tax.
Real income is income after inflation.
Discretionary income is income after mortgage.
The ratio of consumption to income is defined by John Keynes as Average Propensity to Consume. Marginal propensity to consume (MPC) is the proportion of additional income devoted to consumption.
The consumption function shows the relationship between consumption and disposable income.
Part III. Investment
Investment is an expenditure undertaken by firms to add to the capital stock. It leads to an increase in the productive capacity of the economy. Investment is dependent on the rate of interest.
Part IV. Government expenditure
Government expenditure is mainly autonomous. There are three types of government expenditure:
• Government consumption
• Government investment
• Transfer payments
Part V. The AD curve
The aggregate demand curve shows the relationship between the level of AD and the overall price level.
Part VI. Aggregate supply
Aggregate supply is the total supply of goods and services produced by a national economy during a specific time period.
Part VII. Trade in goods and services
Trade in goods and services is a competitiveness of domestic goods and services compared with other countries and is also determined by relative rates of inflation and exchange rate.
• Imports are affected by domestic income
• Exports are affected by incomes in other countries
Trade in goods – visible trade.
Trade in services – invisible trade.
Part VIII. The multiplier
The multiplier effect occurs in response to certain types of expenditure. Multiplier can be defined as the ratio of a change in equilibrium real income to the autonomous change that brought it. The formula of the multiplier is 1 over 1 – Marginal Propensity to Consume.

Chapter 3. The Balance of Payments and exchange rate
Part I. The Balance of Payments
The Balance of Payments is a set of accounts which shows the transactions conducted between the residents of a country and the rest of the world.
The current account of the Balance of Payments identifies transactions in goods and services, together with income payments and international transfers, between the residents of a country and the rest of the world. Three main items appear in the current account:
• The balance of trade in goods and services
• Income (major item is made up of profits, dividends and interest receipts arising from UK ownership of overseas assets)
• International transfers (transfers through central government or transfers made or received by private individuals)
The financial account measures transactions in financial assets. These include investment flows and central government transactions in foreign exchange resources. The financial account should be in strong surplus – as it is required to balance the current account deficit.
The capital account contains capital transfers. The largest item of the capital account is associated with migrants.
The overall Balance of Payments must always be zero.
Part II. Exchange rate
Exchange rate is the price of one currency in terms of another.
Real exchange rate – the nominal exchange rate multiplied by the ratio of relative prices, in other words it is a measure of the international competitiveness on an economy’s goods.
Effective exchange rate is the exchange rate for a country relative to weighted average of currencies of its trading partners.

Chapter 4. Macroeconomic policy objectives
Part I. Principal objectives of macroeconomic policy:
• Price stability
• Full employment
• The Balance of Payments
• Economic growth
• Concern for the environment
• Income redistribution
Part II. Price stability
Inflation causes price instability, so one of the main objectives is to decrease inflation.
There are two types of inflation:
• Cost-push inflation (initiated by an increase in the costs of production)
• Demand-pull inflation (initiated by an increase in Aggregate demand)
Persistent inflation happens when the money stock grows more rapidly than real output. Money stock is the quantity of money in the economy.
Part III. Full employment
Full employment occurs when an economy is operation on the production possibility curve with full utilisation of factors of production.
Frictional unemployment is people who are between jobs, they are in job search.
When changes in the pattern of economic activity within an economy take place, structural unemployment occurs.
Sometimes the economy is trapped in an equilibrium position, which is below full unemployment. This situation causes demand-deficient unemployment.
Unemployment may also occur when workers are not satisfied with the current wage rate and prefer not to work. This type of unemployment is called voluntary unemployment. There is also involuntary unemployment, when workers would like to accept the current wage rate, but cannot find employment.

Chapter 5. Economic growth
Part I. Economic growth definition
Economic growth is an increase in the value of output of goods and services in an economy over a period of time and is measured by Gross Domestic Product (GDP).
Part II. Sources of economic growth
Economic growth means an increase in productivity. Productivity measures the efficiency of a factor of production. Labour productivity is measured in two ways: output per worker and output per working hour. Capital productivity is an output per unit of capital.
Total factor productivity is the average productivity of all factors, measured as the total output over the total amount of inputs.
An increase in productivity raises Aggregate supply.

Chapter 6. Macroeconomic policy instruments
Part I. Demand-side policies
Fiscal policy
Fiscal policy is based on the government decisions on its expenditure, borrowing and taxation.
Government budget deficit occurs when tax is less than spending.
Government budget surplus occurs when tax is more than spending.
Monetary policy
Monetary policy is based on the government decisions regarding monetary variables such as money supply and the rate of interest.
In the UK, Monetary Policy Committee (MPC) is responsible for the conduct of monetary policy. MPC sets the rate of interest in order to influence inflation. This interest rate is known as bank rate.
Part II. Supply-side policies
Supply-side policies are a range of measures having a direct impact on aggregate supply and productivity.
Supply-side policies include:
• Education
• Training
• Increasing number of small firms
• Reducing income tax
• Privatisation
• Increasing investment
• Reducing power of trade unions
• Encouraging immigration
• Encouraging inwood investment
• Reducing import controls etc.

Chapter 7. The international economy
Globalisation is a process when the world’s economies are becoming more closely integrated. It is caused by the rapid development in the technology of transport and communications, the reduction of trade barriers and the deregulation of financial markets.
Countries usually specialise in the production of those goods and services, which have a lower opportunity cost of production. In this case countries usually gain from international trade.
However, there are protectionist measures which restrict trade, such as:
• Tariffs
• Quotas
• Non-tariff barriers
Tariff is a tax imposed on imports.

For Mr.Chris

I never ask you to help me, but it is another situation! Please can you make for me like a "bullet point" what i should know in first year business studies! Thank you for that.

Toyota

Today I am going to write about a strategy for Toyota as they have problems.

My strategy is :

1)Reduce production, stock falls,the market has over capacity by reducing production cost(labour. materials) are reduced. This is a mind map showing stock control .

2)Create a new hybrid. Electric + petrol.

3) Ask the government for subsidies, this would improve cash flow and reduce costs of investment.

4)New market

5) New product: Flying car, boats.

6)Close plants e.g truck company.

7)Establish the emergency profit improvement committee to seek ways of reducing waste.

8)Cut managers bonuses.

9)Reduce work force

10) Reduce pay

11)Reduce hours

12)Sell all or part of the company

13)Drop price

14)Use the Toyota brand to make other products

Nightmate "e-book"

After 9 hours, 6 bottle of red bull, 86 websites and 2 large pizza i've done it!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! I've done my e-book. I'm happy now. it was terrible night. Please some one kill me...

Snow snow snow...

New business idea. How to start up a business in the school.
Seasonal business onlu for hot mounth in year.
Talk to director about new smoking area and abgreate it, started to sell chips, coca-cola, etc. you can bay for snow time spesial heatting. evaluation of this business idea you can see tommorow in my blog or wait her realisation.

Business motivation

Motivation. It's a complicated subject that is studied by many and understood by few. Virtually every aspect of human life -- from the mundane to the life-changing -- is guided, swayed and altered by motivating factors.

For instance, what to have for dinner may be motivated by a desire to lose or gain weight. Whether or not to attend a business seminar may be motivated by the speakers, location and cost. When and where to buy new clothing may be motivated by a long list of personal preferences as well as the changing seasons and weather conditions.

Even reading this article is a motivated behavior. Do you like the style of writing? Are you curious about the subject matter? Do you have a desire to learn new information? Do you have enough time to finish reading? If the answers are no, you probably won't continue reading!

But since you have continued, you are obviously motivated. You want to learn more about how to get and stay motivated, and how this motivation can help you become a better business owner.

THE BUSINESS OF MOTIVATION
Motivation is one of the most powerful driving forces in the workplace. It can mean the difference between tremendous success and failure.

Motivation stems from two sources. The first part of motivation is external or extrinsic (outside the person) sources. Other motivating factors come from internal forces, which are mainly your thoughts, patterns and collective experiences.

However, humans are unique, so what motivates Jack will not necessarily motivate Jill. You -- and only you -- will be able to determine what works.

Take the time to examine what internal and external factors are motivating you as a business owner. What can you do to enhance and refine your motivation to make yourself more productive and more fulfilled?

Here are seven keys to motivation that may prove helpful.

1. INSPIRATION
Inspiration is critical to getting and staying motivated. If you are not interested in your business, your motivation level will never be high and you won't be able to sustain interest for very long.

On the flip side, if you are energized and excited about the work you are doing, you will have more persistence, energy and intensity.

Take an honest look at your inspiration level. Are you excited about going to work or is it an obligation? You would be surprised at the number of people who choose a business that looks good on paper, but in reality does not interest them in the least. These individuals will grow weary and uninterested pretty quickly because they have no inspiration or passion to sustain them during the difficult times they will encounter as a small business owner.

If you don't really enjoy your work, then think how you can re-focus your small business to better match your needs. Or consider making a change entirely. That's pretty drastic advice, but inspiration is that important.

2. SETTING GOALS
Short and long-term goal setting is vital for any business owner. If you didn't set goals, you would be adrift with nothing to strive for and no charted course to follow.

How could you possibly be motivated if you were unsure about the direction of your company?

Take the time to put your goals in writing. A business plan may sound daunting, but it is really nothing more than goals, strategies, implementation and a budget. Write your own business plan and update it at least annually. Include "mini-goals" that can be accomplished in a matter of hours, days or weeks as well as the more ambitious "grand-goals" that may take years to complete. Refer to this plan throughout the year.

But can a business plan really help motivate you? Yes! Written goals will make you feel more professional and certainly more connected to your business. It will also free you from having to reinvent your business goals every single day.

3. NETWORKING
Another key factor in getting and staying motivated is networking with other small business owners. One person can't move huge mountains. However, when a number of people begin working together the mountains are suddenly only small hills -- simply challenges waiting to be surmounted.

In fact, the isolation of working alone is of one the most difficult parts of being an entrepreneur. Mutual support is motivating. So, make it easier on yourself by connecting with others either in your community or online. Even when businesses are not related, you will often find common ground and ways to work together.

Many successful entrepreneurs report that finding the right networking group was a turning point in the growth of the business. Working together, a networking group can help its members generate more qualified sales leads and solve problems faster and more efficiently. Sharing ideas, expertise and experience is also an invaluable aspect of networking groups. And, don't forget about sharing costs, possibly by buying in bulk or with joint marketing projects.

Your own personal team of business owners will help re-energize you when the burdens of running your own business seem too much. With your networking team to rely on, you can accomplish more in less time and probably have more fun in the process. Certainly, you will feel less alone.

4. REWARD YOURSELF
Small business owners will always have to work hard, but all work and no play is a huge mistake. Your motivation will soon begin to fall if you never take any time away from the demands of running the business.

So, plan frequent rewards for yourself. No, it doesn't need to be a trip to Hawaii (although this is a great idea). Your reward can be as simple as a lunch out with an old friend, a matinee with your significant other, an afternoon of shopping or a relaxing massage.

If your budget and time will allow, take a few days off for a short trip or simply schedule a vacation from work for a few days. Make it a real vacation -- even if you don't leave town -- so no checking email, voice mail or the fax machine. You need to get away, unwind and renew yourself. This "down" time to regenerate will help improve your attitude and perspective. It sounds corny, but you will come back to your business with a new sense of motivation.

5. EXERCISE
While it isn't always immediately apparent, there is a powerful connection between the mind and the body. It is vital for every small business owner to take breaks and exercise -- everyday. If your body isn't healthy, your motivation will certainly suffer.

These exercise breaks don't have to be huge blocks of time, and you needn't spend money joining a gym or hiring a personal trainer. Start by walking briskly for 30 minutes before, during or after work. After you have incorporated a walk each day, then try doubling the time or doing two walks each day.

Whatever works for you is best, but the important thing is to start. You will begin to feel better.

After the walking is part of your routine, add some basic light weights. Buy a tape or go online to find out how to properly use the weights so you won't injure yourself.

You can keep the weights under your desk, and use them for just a few minutes at a time. Buy a timer the next time you are at the grocery store. Set the timer for for three minutes to start and then add a minute or two until you're up to 10 or 15 minutes each day.

Some small business owners have a television at work and they schedule a CNN break along with their weights. This way, they are catching up with world and local news while simultaneously getting some moderate exercise.

8. ORGANIZE
Organization is critical to motivation. How can you feel good about your work, when you can't find important papers or you are constantly late returning messages? Your business will falter and your motivation will suffer.

Some people just can't get organized. If you are one of them, then consider bringing in someone -- a business friend, family member or professional -- to help you get the clutter and mess cleaned up. You will be amazed at how this one important step will help you get back on the organizational track. Don't stop there. Now really get organized by creating business systems that will help you streamline your operations.

The real challenge will be keeping yourself on track by maintaining these systems. For many, it is a daily challenge, but if you use your organizational systems you'll be free to think about other important issues.

7. MOTIVATIONAL SPEAKERS AND AUTHORS
As small business owners, it seems we are bombarded with motivational ideas and materials-- tapes, books, CD's, seminars, workbooks, videos and more. Why are there so many different motivational products, authors and speakers? Because people are buying these materials. Used effectively, they are effective and therefore they sell!

However, there are so many different motivational gurus that it is often difficult to see through the clutter to find someone that makes sense for you -- someone who can get you "fired up" about working and improving your business.

Try talking to your mentor or networking group members to see who they might recommend. Start being aware of the motivational industry and how it might help you become more enthused and positive about your business. Do some light research of your own to find some authors and speakers that interest you.

Before you invest in motivational materials, you can probably find some inexpensive ways to obtain the materials. Check out your local library, tune into your local PBS station, buy materials with a networking friend, visit used bookstores or buy used materials online. Don't make a huge investment, because you will probably want to sample many different viewpoints.

But do these materials really work? Yes, but only if you make the effort. Just like exercise, you have to work the muscles -- in this case your mind muscles.

It is up to you to take that information and apply it to your own life and business. Really use the motivational ideas over a period of time and you will begin to see results.

KEEP THE MOMENTUM GOING
Motivation is what moves us forward in our daily and business lives. Take the time to examine your motivating factors and use some of these keys to improve your focus and renew your enthusiasm. If you keep on track, the motivation momentum can't help but carry you forward.

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