MGM101H5 Lecture Notes - Lecture 5: Foreign Direct Investment, S&P 500 Index, Bargaining Power

• School: UTM
• Department: Management
• Course: MGM101H5
• Professor: Dave Swanston

Document Summary

Businesses are always changing (rules, goods, values are changing) Decisions has to be based on this - constant evaluation is needed. Variable: american government shut down - this can affect surrounding. There is no budget so business has to stop. Corporation who sells weapon can"t earn - because government can"t buy these. Government plans to estimate max amount to limit expenses. If don"t pay debt, then government goes bankrupt - a real risk. This creates uncertainty - which will affect the market. Basic necessities we need which stay consistent despite of economic crisis - the prices go up. Essentially the article is about what business conditions are so we can evaluate changes. Business prosperity and future opportunities are contingent on economic conditions at home and abroad. Managers must understand how economic changes impact their businesses and establish the contest for decision making.