OtsoValo / BBBC9

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9.3 Economic Factors Related to International Business #8

Open OtsoValo opened 6 years ago

OtsoValo commented 6 years ago

•Economic Systems - •Market Economies - companies and the market affect how goods and services are produced and distributed •Centrally Planned Economies(command) - government control how goods and services are produced and distributed ex.North Korea •Mixed Economies - mix of government control and private companies controlling how goods and services are produced and distributed ex.China •Global Economic Systems

Business Cycles Depression - slow economy, consumers buy less, high unemployment.

  1. Recovery - new business and consumer demands, unemployment still high but decreasing, people starting to buy more.
  2. Prosperity - strong economy,consumers consumed a lot,low unemployment rate-but skilled labour and law materials may became scarce
  3. Recession - economy start to slow, consumers buy less, increase in business failures and growing unemployment

•The World Economic Freedom Index (Guess the top 5 countries) Hong Kong, Singapore, USA, UK, New Zealand.

Canada’s Global Entrepreneurs • in Canada,1 in 6 started their own business in 2000 •European countries has is harder to be entrepreneurial because employers provide excellent benefits •New business ventures require a receptive government and flexible workforce •Ex. new business ventures required less bureaucratic hurdles •Around -the -Clock Markets •Trade around the clock in different timezones •Equity– refers to something that is of value ex. House, stock. •Common Currency: different countries using the same currency ex. Euro.

Advantages Usually makes your currency harder Helps makes business transactions smoother Tourism is also easier between those countries Disadvantages Countries has control over their currency value If one member country has a problem, it has a bigger effect on other members.