BSB119 Lecture Notes - Lecture 3: Intergenerational Equity, Purchasing Power Parity, Planned Economy
Document Summary
Lecture 3: business characteristics socio economic characteristics. For assistance with researching for the assignment and the tutorial homework for this week, see the additional lecture slides which have been posted on to bb. Important to consider: the type of economic system (market economy; centrally planned economy; mixed economy); The world economy is obviously not homogeneous. Differences in the economic environment confront mncs with a broad range of situations. A fundamental aspect is the type of economic system in which the firm operates. It is customary to distinguish between market economies, centrally planned economies and mixed economies. This type of economy emphasises private ownership and free market activity. The market economy is used by all major industrialised countries. However, large corporations, trade unions and governments limit the freedom of the market. In entering a market a mnc needs to assess the impact of these factors.
