COMMERCE 1E03 Chapter 2: Chapter 2 Notes.docx
3 Dec 2014
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Document Summary
A major part of business success is due to an economic and social climate that allows businesses to operate freely. Investing is risky enough without having to worry about unpredictable governments, massive corruption, and weak laws. Therefore any changes in our economic or political system have a major influence on our business. For example, foreign investors like canada because we have a stable economic and political environment. Economics- is the study of how society chooses to emply resources to produce goods and services and distribute them for consumption among various competing groups and individuals. It could be also defined as the allocation of scarce resources as many economist believe that resources are scarce and that they need to be carefully divided among people, usually by the government. Resources(a. k. a factors of production) -could be anything including land, labour capital goods, entrepreneurship, and knowledge. Businesses may contribute to an economic system by inventing products that greatly increase available resources.
