MGTA01H3 Chapter Notes - Chapter 2: Frictional Unemployment, Business Cycle, Structural Unemployment
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MGTA01H3 Full Course Notes
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Chapter 2 : understanding the environments of business. Assemble / organise resources: resources can be factors of production (natural resources, labour, capital, entrepreneurs, information and technology) External environment: consists of everything outside of organization"s boundaries that might affect it. It also determines the success or failure of any organization. Must understand the of environment facing their company, and then strive to operate and compete within it. Economic environment: refers to the conditions of the economic system in which an organization operates. Eg: mcdonalds canadian operations functioning in an economic environment characterized by moderate growth, unemployment and low inflammation. Recession: period during which aggregate output declines. If lasts too long, it is called depression. Both lead to higher demand of living. Growth leads to higher standards of living. Must look at nation"s economic system growth to determine the improvement in standard of living: gross domestic product.
