Monday , 20 May 2013

Tag Archives: production

Protection vs. Free fight liberalism


Market penetration of modern macro economy not only threatens the traditional market players, but also economic actors in other sectors. With the trade structure of the above conditions it can be concluded that the conditions of business competition in Indonesia growing lead in the pattern of monopoly or oligopoly as a result of the influence of economic globalization (free markets).
Unfortunately, regulation at national level related to trade (Presidential Decree No. 112/2007 and No. 53/2008 Permendag) do not have sufficient material and substantial in providing direction and model of the protection and development of value systems, social capital, and the traditional market players. Her spirit was even more leads to free competition (free fight liberalism). The contents of both the regulation is more accommodating ketelanjuran current trade order where there has been the dominance of large retailers than meets the spirit and constitutional imperasi contained in the Articles of Social and Economic Development Act of 1945.

Trade draft being discussed today the Government and Parliament are also better reflect the reality ketertundukan factual rather than the ideals of the ideal (law as a tool of social enginering). Regulation is only a residual policy delivery, which makes the traditional market players will remain as an object of the project and the player the edge.

Nevertheless, the vagueness spirit, direction, and a model of trade protection and development of the people, has given a wide space for the existence of local regulations. In the context of protection, some local regulations that already exist and are being designed in the province of Yogyakarta has shown enthusiasm and assertiveness aspects / protection model for the traditional market players. But how much protection against the system of values ​​and social capital, as well as direction, aspect, and the traditional model of market development is still unclear and is largely determined by the interpretation and orientation of regional policy makers.

Protection policy should be aimed to protect the value system (togetherness and kinship), social capital (cultural production), and all elements of a traditional market in Yogyakarta Province include traders, suppliers, retailers, informal workers, and consumers. In accordance with the 1945 Constitution the protection of traditional market players include protection against the elements of the material, intellectual, and institutional.

Protection of the third dimension and the element should include a comprehensive range of aspects including restrictions (quotas) the number of trendy shops, the determination of location and distance (zoning), restrictions on opening hours of a modern store, which sold the product distribution, licensing arrangements, distribution of ownership and viewing the modern shop, balancing the relationship between wholesalers, medium, and small (the division of market share), and the affirmation of direction and pattern of development of traditional markets.

Incoming Terms:

Factors that influence consumer behavior


Factors that influence consumer behavior in making consumption goods are as follows:
a. Income. Revenue is the remuneration received by the owners of factors of production. Income can be wages or salary, interest, capital, and profits. The higher the income received by consumers, the higher the purchasing power. Goods that can be bought more and higher quality.
b. Price. High or low level of prices can affect consumer behavior in purchasing goods and services. If the price of goods go down, then the consumption level will go up. Likewise, on the contrary, when prices rise, then the consumption level will go down.
c. Taste. Attitudes, tastes, and a person’s personality can also influence consumer behavior. People who tend to be wasteful to buy goods outside of the calculation. People who liked antiques antiques tend to buy even though it was expensive and beyond the common sense most people. Conversely, people who like to save money will account for any expenditures and limit their consumption.
d. Culture. Cultures that live in a society will influence their consumption behavior. Every society has different cultures and this will lead to differences in consumption patterns and behavior.

Incoming Terms:

types of market


Local markets, ie markets where buyers and sellers come from the local area and marketing the product range includes only locally around the market.

Regional markets, ie markets where buyers and sellers from a particular area and coverage area limited to marketing its products and regions.

National markets, ie markets where buyers and sellers come from several regions within a country and the marketing of its product range includes areas within a country.

International markets, ie markets where buyers and sellers come from several countries and marketing its product range covers the whole world.

Consumer goods markets, ie markets that provide or trade in consumer goods, both for direct consumption or for consumption indirectly.

Market production resources, namely the market that provide or traded factors of production.

Perfect competition, ie the market where many buyers and many sellers who trade in goods that are homogeneous.

Market competition is not perfect, ie the market where the balance of power between buyers and sellers are not equally numerous and usually between buyers and sellers lack of freedom in determining the price of supply and demand because there is no standard price.

Daily market, namely the market place every day. Usually the goods sold in the form of consumption goods, raw materials and production equipment. Daily Markets are usually found in areas that are densely populated.

Weekly market, a market that is held once every week or once a week. Weekly market in addition to usually found in densely populated areas that have not been this kind of market is also widely spread in the remote villages in Indonesia.

Monthly markets, namely the market held every month in specific areas. Visitors to the merchant market only certain goods and the buyers were generally traders who buy goods for resale.

The annual market, the market held once a year. This market there is a national and international, and held in the towns commercial center.

Incoming Terms:

Definition of money market


The money market is where the funds are bought and sold securities in the form of short-term (less than 1 year). As examples of securities include: call money (the loan at any time, usually futures few days only), Bank Indonesia Certificates (SBI), a promissory note / acceptors and trade notes issued by banks or other nonbank financial institutions. Form of money market organized by Bank Indonesia is the “interbank money market”, this is a container that serves to channel the needs of official funds or excess funds from the banking world to the parties that require a simple, fast, and effective and organized.

The function of money markets, among others:
a. As an intermediary in trading securities are short-term.
b. As a collector of funds in the form of securities, short-term.
c. As a source of financing for companies to invest.
d. As a guarantor in the issuance of short-term securities.
e. As intermediaries for foreign investors in disbursing short-term loans to companies in Indonesia.
f. Help finance the company’s working capital by buying securities of short-term (bill of exchange, promissory notes, etc.).
g. As a collector of funds in the form of excess cash from the bank or company that while not in use.

Benefits of money markets, among others:
a. The requirement for short-term credit to finance working capital needs of companies, such as basic materials, or materials for a smooth production process.
b. Can be productively channeling the funds in the form of cash temporarily (short term) has not been used.
c. Employment and increase incomes.
d. Fulfillment of goods and services for the community.
e. Spur economic development success.

Incoming Terms:

Types of banks, the main tasks of the bank, and bank products


The types of banks and their main duty is as follows:
a. The central bank
Central banks in Indonesia is Bank Indonesia. The central bank has the following main tasks:
- Print and regulate money circulation.
- Maintain the stability of the money.
- Encourage the smooth production and development.
- Giving credit to banks in Indonesia.
- Establish interest loans to all banks.
- Overseeing all banks in Indonesia.
- Acting as the holder of the treasury.

b. public Bank
Commercial banks are banks that lend capital to the community to run a variety of productive activities such as industry, agriculture, plantations, trade, fisheries, and livestock. Examples of commercial banks in Indonesia: BRI, BNI, Bank Niaga, Lippo Bank, and others.
Public Bank has the following main tasks:
- Collecting funds, mainly in the form of savings deposits.
- Provide short-term credit to the community.

c. Rural Banks
Rural banks are part of the national banking system. Rural banks have the following tasks:
- Provides banking services in the form of lending and deposit receipts, especially for the economically weak businesses and rural communities.
- Supporting the growth and modernization of the rural economy.
- Reduce the practice of bonded labor and moneylenders.
Examples of rural banks are Bank Village, rice barns, Market Bank, Credit Bank District.

Bank products
a. The product is the central bank currency, demand deposits, and credit services.
b. The product is a commercial bank demand deposits, credit services, savings services, money remittance services, and foreign currency exchange services.
c. Products of rural banks and credit services savings services.

Incoming Terms:

Definition of Non-Bank Financial Institutions


Financial institution is an institution or entity conducting activities in finance, manage their implementation withdrawal of money from the public and convey back to the community in ways consistent with the provisions and regulations or laws in society and the state.

In general, Non-Bank Financial Institutions are financial institutions whose activities do not collect and distribute public funds such as those held by banks, but only conduct activities in financial services.
In particular, Non-Bank Financial Institutions are institutions that conduct activities in the financial sector that directly or indirectly raise funds by issuing securities and then channeled to the community, especially for investment companies.

The purpose of government an opportunity to establish non-bank financial institutions is to encourage the development of money market and capital markets, and capital firms help companies, especially the economically weak.

Function Non-Bank Financial Institutions
Non-Bank Financial Institutions function as follows:
a. Accommodate the workforce.
b. Improving the standard of living.
c. Equalize incomes.
d. Increase production.
e. Encouraging the development of capital markets and money markets.

Efforts undertaken by the Non-Bank Financial Institutions
Non-Bank Financial Institutions have the following efforts:
a. Collect funds from the public by issuing securities.
b. Giving credit, especially medium-term credit.
c. Hold equity in companies or projects.
d. Act as intermediaries in bringing foreign workers.

Incoming Terms:

Functions and benefits of capital market


Capital market has the function as follows:
a. As intermediaries in trading securities, long-term.
b. As a guarantor in the issuance of long-term securities.
c. Help provide loans to companies by buying bonds issued.
d. Helping companies to enlarge their business capital through the sale of shares.
e. Simplify and accelerate the monetization of securities as well as trying to improve the circulation of securities (securities).
f. Encourage and develop business activities.
g. Enhance and create equitable distribution of income for the community.
h. Spur national economic growth.
i. As a secondary market, meaning that the stock exchange not only serves as the capital markets, but also as the money market. The second function is called the secondary market.
j. As a collector of public funds to boost economic growth.

The benefits of capital market
Capital markets has benefits as follows:
a. Fulfillment of a long-term credit to finance fixed assets, such as machinery, buildings, vehicles and so on, so it will better ensure continuity of business enterprise.
b. Encourage and develop the growth of the business world.
c. Enhance and create equitable distribution of income for the community.
d. Expanding employment that will reduce pangangguran.
e. Increasing national production and national economic growth.
f. The government obtained additional tax revenue from the resulting increase in economic growth.
g. Provide income for people associated with the issuance and trading on stock exchanges.
h. Investors earn profits or interest payments from the company that issued the securities.
i. People can enjoy the additional production generated by the business.
j. Provide an opportunity for communities to have company and enjoy the results.

Incoming Terms:

Company and business entity


Production efforts made ​​by society in general carried out in a separate economic units called companies. Another term used is a business entity. But in economics is often distinguished between the business entity with the company. Business entity as an agency efforts undertaken by the society and government, called the State-Owned Enterprises (SOEs), such as PLN, PJKA, GIA, PELNI, and so on with the following requirements:
a. Has a certain position
b. Conduct business openly
c. Carried out continuously
d. Has the goal of profit
e. Business license from the government

While the company is an economic unit which aims at performing a part of the production process. In the company carried out against the exploitation of natural resources, labor, and capital to produce a production either in the form of goods and services. Usually the problems that arise within the company to produce goods or services are as follows:
a. Cost issues (sources of capital and the use of capital)
b. Technical problems (the implementation of enterprise, efficiency, effectiveness)
c. Issue price (cost price and sale price)
d. The issue of profit and loss
e. Problem management

Therefore when setting up a business then it should consider the following matters:
a. What is produced
b. How to implement
c. For whom the production was
d. Where is the right place to set up a company
e. Form what is most appropriate company
f. What risks will be faced

Role of government in economic activity


Role of government in economic activities can be carried out directly or indirectly. The role of government in economic activities is very important, one of them as a regulator of economic activity. Here is an explanation of the role of government in economic activities.
a. Regulate economic activity. In economic activity, the government tasked to direct, regulate and control economic activity through various policies, legislation and direct action in the field. The ultimate goal is to increase employment, controlling prices, increase economic growth, and stabilize the balance of foreign payments. All economic activities were carried out to create a just and prosperous society.
b. Role as consumers. The role of government as a consumer is done by meeting the needs in the stewardship of the state. Therefore, the government needed the goods and services, such as automobile operations, official uniforms, stationery, paper, and banking services. Goods and services purchased by governments of foreign companies or society.
c. Role as a producer. Government as a producer means a role in producing goods and services. Goods and services produced by government is the result of production that dominate the life of society and is an economic activity that may be less profitable but their products are badly needed by society at large. As a producer, the government also requires factors of production from the household and the community abroad.

Incoming Terms:

Business Forecasting


Forecasting or Prevoyance (France) is the predicted activity, project or make estimates of the various possibilities that occurred before anything more definite plans to do. For example, an academy, predicts the number of students who will register for the educated at the academy. Divination is done by using several indicators, such as the number of high school graduates, the number of high school, and so forth. An enterprise engaged in industry should be held forecasting about how great the number of their products by taking into account the number of production companies, per capita income members of society, buying habits, and so forth. So, in other words, forecasting has a very important role in determining what should be done in order to get success in the future. Could also be a good tool in determining management decisions.

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