RSM100Y1 Chapter 2: chapter2
Document Summary
External environment: everything outside an organization"s boundaries that might affect it. This environment plays a major role in determining the success or failure of any organization. Organizational boundaries: that which separates the organization from its environment. Economic environment: conditions of the economic system in which an organization operates. Three goals in the canadian economic system: economic growth, stability, and full employment. Tools we use to measure economic growth: aggregate output, standard of living, gross domestic product, and productivity. 2. 5% of population works in agriculture in canada; agriculture production has grown because we have been able to increase total output in the agricultural sector. Business cycle: pattern of short term ups and downs (expansions and contractions) in an economy, this cycle is used to examine whether or not an economic system is growing. The cycle has four recognizable phases: peak, recession, trough and recovery.
