itb - ayesha aman - Economics

1. CHAPTER 2 Understanding the Environments of Business Copyright 2004 Prentice Hall, Inc.

3. Organizational Boundaries and Environments All businesses— regardless of their size, location or mission— operate within a larger external environment. Copyright 2004 Prentice Hall, Inc.

4. What Is the External Environment? Everything outside an organization’s boundaries that might affect it Copyright 2004 Prentice Hall, Inc.

5. What Is an Organizational Boundary? That which separates the organization from its environment Copyright 2004 Prentice Hall, Inc.

6. Dimensions of the External Environment Copyright 2004 Prentice Hall, Inc.

7. What Is the Economic Environment? Conditions of the economic system in which an organization operates Copyright 2004 Prentice Hall, Inc.

11. What Is Purchasing Power Parity? Principle that exchange rates are set so that the prices of similar products in different countries are about the same Copyright 2004 Prentice Hall, Inc.

12. What Is Productivity? Measure of economic growth that compares how much a system produces with the resources needed to produce it Copyright 2004 Prentice Hall, Inc.

13. What Is Balance of Trade? Economic value of all the products that a country exports minus the economic value of imported products Copyright 2004 Prentice Hall, Inc.

14. What Is National Debt? Amount of money that a government owes its creditors Copyright 2004 Prentice Hall, Inc.

15. What Is Stability? Condition in an economic system in which the amount of money available and the quantity of goods and services produced are growing at about the same rate Copyright 2004 Prentice Hall, Inc.

16. What Is Inflation? Occurrence of widespread price increases throughout an economic system Copyright 2004 Prentice Hall, Inc.

17. When Did the Cost of a Hamburger Go Up? Copyright 2004 Prentice Hall, Inc.

18. Measuring Inflation: The CPI Measure of the prices of typical products purchased by consumers living in urban areas Copyright 2004 Prentice Hall, Inc.

19. Selected CPI Values Copyright 2004 Prentice Hall, Inc.

20. What Is Unemployment? Level of joblessness among people actively seeking work in an economic system Copyright 2004 Prentice Hall, Inc.

26. Internet Users per 1,000 People Copyright 2004 Prentice Hall, Inc.

27. Information -Technology Spending Copyright 2004 Prentice Hall, Inc.

28. The Export Resurgence Copyright 2004 Prentice Hall, Inc.

29. What Is Technology? All the ways by which firms create value for their constituents Copyright 2004 Prentice Hall, Inc.

30. Product and Service Technologies Technologies employed for creating products—both physical goods and services—for customers Copyright 2004 Prentice Hall, Inc.

32. ERP Applications Copyright 2004 Prentice Hall, Inc.

33. What Is the Political-Legal Environment? Conditions reflecting the relationship between business and government Copyright 2004 Prentice Hall, Inc.

34. What Is the Sociocultural Environment? Conditions including the customs, mores, values and demographic characteristics of the society in which an organization functions Copyright 2004 Prentice Hall, Inc.