BUS 201 Chapter Notes - Chapter 2: Money Supply, La Senza, Purchasing Power Parity
11 Sep 2014
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Evolving models in video distribution: netflix and beyond. External environment: everything outside an organization"s boundaries that might affect it. Organizational boundaries: that which separates the organization from its environment. Can"t control environment, so be productive and try to influence it. Economic environment: conditions of the economic system in which an organization operates. Dimensions of the external environment for a business organization: Aggregate output: total quantity of goods/services produced by an economic system (economic growth) When output grows more quickly than population: output per capita goes up. Quantity of goods/services per person: system provides relatively more of the goods/services that people want. Standard of living: total quantity and quality of goods and services that a country"s citizens can purchase with the currency used in their economic system. Business cycle: pattern of short-term ups and downs (expansions and contractions) in an economy. Depression: when trough extends 2 or more years.
