business Exam

Ability to produce more of a good using the same resources.

Many firms, differentiated products.

Bringing goods in/out of a country

Selling goods to another country.

An economic system where the factors of production are privately owned and operated for profit.

Encompasses overall well-being, including health, education, and personal happiness.

Natural resources.

The self-regulating nature of markets.

Government controls all economic activities

Bringing business functions in-house.

Types include demand-pull, cost-push

The process of developing and utilizing resources for economic gain.

How societie use resources to produce and distribute goods and services. It covers production, distribution, consumption

Types include frictional, structural, cyclical.

Government use of spending and taxes to influence the economy.

Expansion, peak, contraction, trough.

Producer willingness to sell.

Geography and natural resources.

Factors like command economies, contract law, currency exchange rates

: Ability to produce a good at a lower opportunity cost compared to others.

Laws and regulations affecting trade.

Difference between a country’s exports and imports.

Economic policies and practices.

Moving business processes to a nearby country

The price at which quantity demanded equals quantity supplied.

Total value of goods and services produced.

Relocating business processes to a different country.

Established in 1995 to oversee international trade rules.

Impact of IT, e-commerce, data mining

A more extreme form of socialism with complete state control and no private ownership.

Government spending, taxation.

Many firms, identical products.

Focuses on the economy as a whole (e.g., GDP, unemployment rates).

Partnerships with foreign firms.

Measures the average change in prices over time

Investing directly in foreign markets.

Little to no government intervention.

The drive and initiative to combine the other factors of production.

Ownership rights over resources.

Consumer willingness to buy.

Measures the economic level of wealth, comfort, and material goods.

The financial gain calculated as Revenue - Costs. It's the difference between what a business earns and what it spends.

Government structure and policies.

Machinery, tools, and buildings.

Few firms, significant market power

Globalization and trade impacts

A individual who identifies a business opportunity, takes on risks, and aims to profit by developing ideas, products.

Advances that enhance productivity.

Central bank actions to manage the money supply and interest rates. Is called Monetary Policy

Agreements to produce goods in another country.

Demographics, market segments.

Currency exchange rates, economic stability.

Focuses on individual businesses and consumers (e.g., supply and demand).

The total income generated by the sale of goods or services.

Stockholder (spice) Society, People (employees, managers) Investors, Customers, Environment

Allowing another company to use your brand.

Shifting business operations to countries with similar political or economic interests.

Customer-driven markets, competition and empowerment.

4 Rights of Capitalism: Private property, freedom of choice, profit motive, competition.

Belief in maximizing exports and minimizing imports to build national wealth. Is called Mercantilism

One firm dominates the market.

Language, customs, and practices.

Specialization increases productivity.

Human effort.

Allowing others to operate a business using your brand.

Predecessor to WTO, established to reduce tariffs and trade barriers.

Returning business processes to the home country

Surplus means exports exceed imports; deficit means imports exceed exports.

Contracting out business functions to third parties.

Combining with or buying foreign companies.

Combination of free market and government intervention.

Economic system where the government owns and controls resources.

: Laws and regulations affecting business and trade.