GMGT 1010 Lecture 5: GMGT 1010 Lecture 5

• School: University of Manitoba
• Department: General Management
• Course: GMGT 1010
• Professor: Brock V.Cordes

Document Summary

Low taxes and less restrictive regulations can attract entrepreneurs. The government can also lessen the risks of entrepreneurship by passing laws that enable business people to write contracts that are enforceable in court. Corrupt and illegal activities at some companies do negatively affect the business community and the economy as a whole. Ethics is so important to the success of businesses an the economy as a whole. The capitalist system relies heavily on honestly, integrity, and high ethical standards. Governments can encourage businesses through: lower taxation, effective regulation, tax benefits, enforce property rights, lower corruption, and trade agreements. Ex: nike producing shoes in thailand and if they become restrictive, then they"ll move to taiwan. Looks at income, expenditures, and resources that affect the cost of running a business. Major economic indicators: consumer spending, employment levels, and productivity. The movement of a country"s currency relative to other currencies also pertains to this environment.