Summary: Economics And Business Environment | 9789001813932 | A J Marijs

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  • 1 Economics and the business environment

    This is a preview. There are 5 more flashcards available for chapter 1
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  • 1.1 Economic Activity and Economics

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  • When does economic activity occur?

    When people make choices to maximise their prosperity using scare resources
  • What are the different distinctions of the field of economics?

    • Industry analysis
    • Macroeconomics
    • Monetary economics
    • International economic relations
  • What is industrial analysis?

    The study of the characteristics of markets and business sectors that companies come into contact with (supply and demand and price changes)
  • What is Monetary economics?

    Is concerned with the phenomenon of money and the role that banks play in the economy
  • What is International economics?

    The study of the international trade between countries, international capital flows and monetary relations between countries
  • 1.2 Business environment

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  • What is the direct environment?

    This is made up of the buying and selling markets on which the company operates
  • What is the indirect environment?

    This consists of the employer and employee organizations, the government and cultural elements such as public opinion and the media
  • Does a company have little influence on the direct or the indirect environment?

    The indirect environment
  • What belongs to the macro environment?

    Economic trends, variations in exchange rates and the price of raw materials and demographic developments
  • 2 Markets

  • 2.1 Market, product and the business sector

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  • Why do demanders and suppliers negotiate with each other?

    To establish the required quantity, quality, terms of delivery and price of a certain product
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