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Unformatted text preview: Business 1/16 Part one- the context of modern business A. The economic environment • The worlds economic system • Factors of production An economic system • How a society allocates its resources to provide goods and services •-unlimited demand • fixed resources Resources are called the factors of production • Land • Labor • Capital • Entrepreneurship – the desire of those who seek to take a risk and start their own business • Knowledge and information example- Wal-Mart’s knowledge of distribution management allows them to be more efficient Compare Japan vs. Russia economies. There are three different economic systems Communism- the government decides what is produced, • All factors owned by all the people, • Government does all the planning and there is • no competition in businesses Som-Some factors owned by all the people. • Equal allocation of resources. • Government/central planning for basic needs. Capitalism- All factors of economy owned privately by the people. • Large competition between businesses....
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This note was uploaded on 09/30/2009 for the course BCOR 1010 taught by Professor Latier,jef during the Spring '07 term at Colorado.
- Spring '07