THE INFLATION

Inflation is ranked as one of the biggest problems of the economy, many economistsconsider inherent to the model of capitalist development, but even in the communist system was also presented this phenomenon.

It consists of a general and continuous increase in the price level in an economy. It isan economic phenomenon that manifests itself through a relative decline in the value of money, ie the reduction in purchasing power due to a rise in prices relative to the amount of goods and services can be purchased with the same .

Overall inflationary process is initiated by various causes, one of the most common ofwhich is caused by a significant imbalance between supply and demand, ie when forvarious economic pressures demand for goods and services exceeds the available supply of them at current prices, or when supply is limited by low productivity ormarket restrictions.

Deflation involves a continued decline in the general level of prices, as happenedduring the Great Depression of the 1930s, usually accompanied by a prolongeddecline in the level of economic activity and high unemployment.

However, widespread falls in prices are not current events and less on Colombia,which have always existed inflationary processes with rates have reached 35%,much lower than those reported in South American countries and despite being a bitmore now controlled, therefore not be regarded as one of the major problems that hasaffected our country.

Theodore Levitt

Levitt was born in 1925 in Vollmerz. A decade later his family moved to Dayton, Ohio. He served in World War II, received his high school diploma through correspondence school and then earned a bachelor's at Antioch College and a Ph.D. in economics at Ohio State University. His first teaching job was at the University of North Dakota.

In this theory, Levitt explains how many times companies focus so much on their product that they forget the market and customers. To understand this, Levitt, develops several examples:
According to this theory the railway companies did not cease to grow because people no longer had the need to travel, because this need was not covered by other means of transport (cars, planes, including wireless ..) but because these companiesassumed to be in the railroad business, not the transportation business.
Something similar happens with the Hollywood industry to define their business market so wrong, they thought they were in the movie business but where are theirmarket really is in the entertainment business. That is why they saw the arrival oftelevision as a threat rather than an opportunity to enlarge the entertainment market.

In 1959 he joined the faculty of the Harvard Business School. Later that year, he became world renowned after publishing Marketing Myopia in Harvard Business Review where he asks "What business are you in?", a phrase that demands one account for the significance of the job one does. Theodore Levitt (n. Vollmerz, Main-Kinzig-Kreis, Germany. March 1, 1925 - Belmont,Massachusetts June 28, 2006) was the American economist and professor at the prestigious Harvard Business School (Cambridge, Massachusetts). Business magazine editor also Harvard Business Review (HBR) where he published his famous article. It was the first theoretical economist to coin the term globalizationfocused on economic standpoint.

Financie Glossary

• Preferred shares: title property value that takes precedence over the common shares in connection with the payment of dividends. These actions dividend rate is fixed at the time of issue and can be fixed or variable.
• Bank acceptance: order written and accepted by a bank to pay a sum determined at a future date.
• Current assets: set of accounts of a company's assets that anticipate its conversion into cash within less than a year. They are usually constituted by box and banks, accounts receivable, inventories, etc.
• Fixed assets: permanent assets that are typically required for carrying out the usual turn of a company. They are usually constituted by machinery, equipment, buildings, land, etc.
• Financial assets: assets that generate financial returns.
• Intangible assets: intangible, type such as patent assets.
• Ad valóren: tariff established as a percentage of the value of the invoice for the goods.

• Bankruptcy: State of insolvency of an individual or a company in which there is no ability to pay its obligations as they were originally agreed.
• Corporate Banking: Set of financing and other services that a bank offers companies.
• Personal Banking: Financing activities and services of a bank to meet the needs of the individual.
• Central Bank: Official institution of the national management of liquidity and the means of payment in the economy.
• Second floor Bank: Bank that channels e financing operations