pp
Business Test
Three kinds of economic resources
- Natural resources
- Human resources
- Capital resources
Natural resources - Come from earth, water, and air. Most of them are non renewable, meaning limited and takes a long time to replenish
The six primary industries for natural resources are
- Fishing and Trapping
- Agriculture
- Mining
- Energy and Fuel
- Water
- Forestry and Logging
What are human resources
Involved the labor needed to create the goods and services
Example: Teachers
What are capital resources
Usually last for a long time and often require serious investment by the business.
Example: Buildings, equipment, tools, trucks, factories
The two types of capital resources are
- Liquid Capital (Easy to spend)
- Non-Liquid Capital (Harder to spend)
What is management concerned about in productivity
They are concerned about the the quantity and quality of work performance in productivity
What are the two ways to improve productivity
Training: Teaching your workers how to work more efficiently and effectively
Capital Investments: Investing in new technologies or stuff to make your business more effective and efficient
What is interdependence
Many are interdependent. They rely on other businesses to help them produce goods and services that satisfy a consumers needs and wants
What is the economy
An economy is the interdependent system where government and businesses work together to provide goods and services to consumers.
What are economic systems? List three
Are a way of dealing with the selection, production, distribution and consumption of goods and services.
- Centrally Planned
- Capitalism (Free market)
- Mixed
What is a centrally planned economy
In this economy the government controls all the economic decision making.
Example: North Korea, Cuba
What is a capitalist economy (Free market)
Consumers determine what will be produced by the money they spend
Example: United States
What is a mixed economy
No economic system exists as purely centrally planned or capitalistic. Most economies are mixed economies.
Example:
Public Sector: Government provides certain services to its citizens that businesses don’t provide. (Educations systems, highways, and bridges)
Private Sector: Businesses that are individually owned and operated whose purpose is to make a profit.
GDP (Gross Domestic Product)
Is the total market value of all goods and services produced within a country in one year
What is the unemployment rate
The percentage of the total labour force that is unemployed but actively seeking employment and willing to work
What is inflation
Is the persistent rise in the average level of all prices. Reduced purchasing power
What is domestic business
Takes place within a country’s borders
Example: A trade done in strictly Canada
What is international business
(Foreign Trade) Includes creating, shipping, and selling goods/services across international borders
Example: Canada and US
Benefits of international business
Access to many markets outside of our country
Cheaper labour reduces production costs
Increased quality of goods
Access to resources
What are the social costs of international business
Outsourcing - Using companies in countries with cheaper labour costs to complete some of the production process
Human rights and labor abuses - Poor treatment of employees
Environmental degradation - Natural resources being overused.
What is international trade
Allows countries to expand their markets and access goods and services that otherwise may not have been available domestically. Market competitive. Cheaper product for consumers.
What are imports
Bringing in goods or services produced somewhere else to sell in this country
Top imports to Canada
Cars
Refined petroleum
Delivery trucks crude petroleum
Computers
Top imports to US
Electrical machinery
Vehicles
Crude oil
Pharmaceuticals
Plastic articles
What are exports
Selling a good or service from this country to another country
Top exports from Canada
Crude petroleum
Cars
Gold
Refined petroleum
Vehicle parts
Top exports from US
Crude petroleum
Gasoline and other fuels
Natural gas
Civilian aircraft parts
Passenger vehicles
What are trading partners
When a domestic business develops a relationship with a business in another country, that country is considered to be a trading partner with our country.
What are free trade agreements
As countries and companies seek out international opportunities for business trade agreements become essential
What is business culture
Is the sum of a country’s way of life, beliefs, and customs. When working with other cultures, you don't want to offend
Do you need to be on time for a meeting - Punctuality
Handshake bow eye contacts or no eye contact - Greetings
Non verbal communication - Familiar gestures are not always consistent from one culture to another
How do you measure business success
Increasing profit
Employee Satisfaction
Personal satisfaction
Why do businesses fail
Lack of demand
Lack of skill and knowledge
Forgetting your roots
Expanding to quick
Lack of capital
Inability to stay competitive