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Business is an organization that provides goods or services to earn profits. Profits represents the difference between a businesss revenues and its expenses
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All businesses- regardless of their size, location or mission- operate within a larger external environment.
Everything outside an organizations boundaries that might affect it is called External Environment of a Business.
The wealth and resources of a country or region, esp. in terms of the production and consumption of goods and services.
An organized way in which a state or nation allocates its resources and distribute goods and services in the national community.
Economic Growth
Aggregate Output and Standard of Living Gross Domestic Product
Real Growth Rate GDP per Capita Real GDP
Economic Stability
Inflation Measuring Inflation: The CPI Unemployment Recessions and Depressions
Business cycle is a pattern of short-term ups and downs (expansions and contractions) in an economy. Aggregate output is the total quantity of goods and services produced by an economic system during a given period.
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Output per Capita the quantity of goods and services per person. When Output per Capita goes , Standard of living also goes .
Standard of living is the total quantity and quality of goods and services that a countrys citizens can purchase with the currency used in their economic system.
GDP, or gross domestic product, is the total value of all goods and services produced within a given period by a national economy through domestic factors of production. GNP, or gross national product, is the total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located.
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Nominal GDP measures the value of all the goods and services produced expressed in current prices.
Real GDP measures the value of all the goods and services produced expressed in the prices of some base year.
Principle
that exchange rates are set so that the prices of similar products in different countries are about the same.
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Measure
of economic growth that compares how much a system produces with the resources needed to produce it.
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Economic
value of all the products that a country exports minus the economic value of imported products Balance of Trade implies exports greater than imports !! & vice versa
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Positive
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Condition in an economic system in which the amount of money available and the quantity of goods and services produced are growing at about the same rate.
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Recession is a period during which aggregate output, as measured by real GDP, declines.
Depression is a particularly severe and long-lasting recession
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Fiscal
policies determine how the government collects and spends its revenues
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Stabilization policy embraces both fiscal and monetary policiesthe goal is to smooth out fluctuations in output and unemployment and to stabilize prices
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All the ways by which firms create value for their constituents.
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Technologies
employed for creating productsboth physical goods and services for customers
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Enterprise Resource Planning, or ERP, is a large-scale information system for organizing and managing a firms processes across product lines, departments and geographic locations
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Example??
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Conditions
including the customs, morals, values and demographic characteristics of the society in which an organization functions
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Customer preferences and tastes vary both across and within national boundaries. Consumer preferences can vary widely within the same country. Consumer preferences and tastes change over time.
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