PSYB21H3 Chapter Notes - Chapter 2: Income Statement, Economic System, Full Employment
Document Summary
This external environment which consists of everything outside an organization"s boundaries that might affect it-plays a major role in determining the success or failure of any organization (all businesses operate within this) Managers need to compete with environment but should also try to influence the environment. Moderate unemployment means that most people can afford to use the business but the company must pay higher. The economic environment refers to the conditions of the economic system in which an organization operates wages to attract employees. Low inflation means that the business can"t increase the prices it charges consumers. 3 key goals of canadian economic system: -economic growth, - economic stability, - full employment. Agricultural production has grown because we have been able to increase total output in the agricultural sector. The short-terms ups and downs in an economy is called the business cycle. It has 4 phases: peak, recession, trough and recovery.
