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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-Marts 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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- Spring '07