BU111 Chapter Notes - Chapter 1: Purchasing Power Parity, Gross Domestic Product, Money Supply

• School: WLU
• Department: Business
• Course: BU111
• Professor: Sofy Carayannopoulos

Document Summary

Every business works in an external environment determines success or failure. External environment (5): everything outside an organization"s boundaries that might affect it: managers try to operate and compete within in. Managers should be proactive to constant unpredictable situations. Organizational boundary (5): separates organization from environment: simple example enter a store in organization leave store in organization. Organizations multiple environments affect performance of every business. Major effects: economic conditions, technology, political-legal considerations, social issues, global environment, issues of ethical/social responsibility, challenges/opportunities. Economic environment (5): conditions of economic system in which organization operates. Moderate unemployment afford to eat out. Low inflation constant prices for supplies: price change not constantly occurring. Agriculture production has grown output has increase: technology. Aggregate output (6): total quantity of goods during a period of time in a particular economic sector. Output greater than population: output per capita going up, provide more.