BUS-D 270 Chapter Notes - Chapter 4: High Standard Manufacturing Company, Global Innovation Index, Ecological Economics
Document Summary
Studying an economic environment helps managers make better investment choices and operating decisions. Resource constraints require managers to identify which countries in the world warrant investment as well as those they must avoid. Managers study a country"s economic environment to asses its development, explain its performance and estimate its potential. Principles that help managers better assess economic environments: Actions in one country influence another country. Degree of economic freedom: to make investments and run ops. Drivers of economic performance: productivity, innovation, competitiveness. Orientation of economic system: shapes path of development, performance and potential. Growing prosperity between developed and developing economies. The base of the pyramid: largest, poorest socioeconomic group in the world. Economic freedom: one has the right to work, produce, consume, save & invest in the way that one wants. Measures the absence of government coercion or constraint on the production, distribution, or consumption of g&s beyond the extent necessary for citizens to protect and maintain liberty.
