COMM 103 Chapter Notes - Chapter 2: Credit Theory Of Money, Pest Analysis, Comparative Advantage

• School: Queen's University
• Department: Commerce
• Course: COMM 103
• Professor: Gary Bisonnette

Document Summary

For economic development, there must be a stable environment for growth. Fundamental economic factors: expenditures, savings, capital asset investments money invested into future growth, credit money borrowed to cover investments and expenditures. Economic activity = expenditures + savings + investments + credit. Gdp is the total value of goods/services produced and sold in a country. Gdp = sales + investments + government spending + (exports imports) Small businesses 90% of canadian businesses have <20 employees. Parity when one unit of different currencies equal each other. Purchasing power parity universal measure of economic activity, after adjustments. Usually attained through large capital or creative differentiation: e. g. commercial passenger airline manufacturing businesses, monopoly-based markets, single supplier (usually government-monitored, e. g. electricity and natural gas. For e(cid:454)a(cid:373)ple, north a(cid:373)eri(cid:272)a(cid:859)s auto i(cid:374)dustr(cid:455) i(cid:374) the (cid:858)(cid:1010)0s (cid:449)as. It became monopolistic with the introduction of japanese and european manufacturers. Commoditisation: products once considered unique becoming less so customers focusing more on price.