BUS 200 Chapter Notes - Chapter 2: Money Supply, Viral Marketing, Foodservice
Business 200 Chapter 2
External Environment
Everything outside an organization's boundaries that might affect it.
Organizational Boundary
That which separates the organization from its environment.
Distributors of products are normally considered part of the environment rather than the
organization, except when they are in the business environment.
Economic Environemtn
Conditions of the economic system in which an organization operates.
Aggregate Output
G&S produced by a country in a given period
Standard of Living
total quantity and quality of goods and services that a country's citezens can purchase with the
currency used in their economic system.
Business cycle
short ups and downs/expansions and contractions
Real GDP
Adjusted measure of output growth using prices in the base year
PPP
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Principle that exchange rates are set so that the prices of similar products in different countries
are about the same.
If purchasing power parity holds, a basket of goods in Canada should cost the same as a basket
of goods in the USA at the current exchange rate.
Nominal GDP
GDP measured in current dollars or with all components valued at current prices.
Balance of trade
exports minus imports
Productivity
Measure of economic growth that compares how mucha system proudces with the resources
needed to produce it.
National Debt
money a country owes to creditors
Budget deficits
The result of the government spending more in one year than it takes in during that year
Stability
Amount of money available and the quantity of G&S produced are growing at about THE SAME
RATE
Inflation
When a monetary injection outstrips the increase in aggregate output
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Document Summary
Everything outside an organization"s boundaries that might affect it. That which separates the organization from its environment. Distributors of products are normally considered part of the environment rather than the organization, except when they are in the business environment. Conditions of the economic system in which an organization operates. G&s produced by a country in a given period. Standard of living total quantity and quality of goods and services that a country"s citezens can purchase with the currency used in their economic system. Business cycle short ups and downs/expansions and contractions. Adjusted measure of output growth using prices in the base year. Principle that exchange rates are set so that the prices of similar products in different countries are about the same. If purchasing power parity holds, a basket of goods in canada should cost the same as a basket of goods in the usa at the current exchange rate.
