MGTA01H3 Chapter 2: Chapter 2
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MGTA01H3 Full Course Notes
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Document Summary
All businesses operate within a larger external environment. The external environment plays a major role in determining the success or failure of organizations. The business cycle has four phases: peak, recession, through and recovery. An increase in aggregate output is growth (or economic growth). When output grows more quickly than the population the output per capita goes up and the system provides relatively more of the goods and services people want. If gdp is going up, the nation is experiencing economic growth. The profits earned by a canadian company abroad are included in gnp, but not in gdp. Gdp and gnp allows us to track an economy"s performance over time. The growth rate of gdp adjusted for inflation and changes in the value of the country"s currency. Depends on output increasing at a faster rate than population. If gdp exceeds the rate of population growth, it means that our standard of living is improving.
