MA129 Lecture Notes - Lecture 2: Oligopoly, Canadian Dollar, Business Cycle
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MA129 Full Course Notes
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Document Summary
Economic environment: this the conditions under which an organization operates. Ex: unemployment rate and interest rates: three key groups: individuals, government, and businesses. Individuals, they make personal and purchasing decisions and economic choices. Businesses, to make profit and ensure efficiency, productivity and growth, business must balance the 5 factors of production-its input (labour, capital, knowledge, natural resources, and entrepreneurs. Labour- worker, hr people, accountants, management people: capital- assets, location of production, equipment, natural resources- ex. It had many short comings like lack of innovations, lack of rewards, no reason to innovate, no free market under communism. It did not provide incentives and stimulus for products innovation or quality improvement, efficiency or high productivity: socialism system is where the government controls some industries and allows somewhat of a free system. The government can have a substantial influence on business goals, business decisions.
