By: Sidrah Farooq

Business is an organization that provides goods or services to earn profits. Profits represents the difference between a businesss revenues and its expenses
2

All businesses- regardless of their size, location or mission- operate within a larger external environment.

Everything outside an organizations boundaries that might affect it is called External Environment of a Business.

That which separates the organization from its environment.

Conditions of the economic system in which an organization operates.

The wealth and resources of a country or region, esp. in terms of the production and consumption of goods and services.

What Is the Economic System?

An organized way in which a state or nation allocates its resources and distribute goods and services in the national community.

Economic Growth
Aggregate Output and Standard of Living Gross Domestic Product
Real Growth Rate GDP per Capita Real GDP

Economic Stability
Inflation Measuring Inflation: The CPI Unemployment Recessions and Depressions

Purchasing Power Parity

Productivity Balance of Trade National Debt

9

Business cycle is a pattern of short-term ups and downs (expansions and contractions) in an economy. Aggregate output is the total quantity of goods and services produced by an economic system during a given period.

AN in Aggregate Output is Economic Growth !!!

10

Output per Capita the quantity of goods and services per person. When Output per Capita goes , Standard of living also goes .
Standard of living is the total quantity and quality of goods and services that a countrys citizens can purchase with the currency used in their economic system.

GDP, or gross domestic product, is the total value of all goods and services produced within a given period by a national economy through domestic factors of production. GNP, or gross national product, is the total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located.
12

If GDP Aggregate Output is Economic Growth !!!

Nominal GDP measures the value of all the goods and services produced expressed in current prices.
Real GDP measures the value of all the goods and services produced expressed in the prices of some base year.

 Principle

that exchange rates are set so that the prices of similar products in different countries are about the same.

15

 Measure

of economic growth that compares how much a system produces with the resources needed to produce it.

16

 Economic

value of all the products that a country exports minus the economic value of imported products Balance of Trade implies exports greater than imports !! & vice versa
17

Positive

Amount of money that a government owes its creditors.

18

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.

19

Occurrence of widespread price increases throughout an economic system.

20

21

Level of joblessness among people actively seeking work in an economic system.

22

Recession is a period during which aggregate output, as measured by real GDP, declines.
Depression is a particularly severe and long-lasting recession

23

 Fiscal

policies determine how the government collects and spends its revenues

24

Monetary policies determine the size of a nations monetary supply

25

Stabilization policy embraces both fiscal and monetary policiesthe goal is to smooth out fluctuations in output and unemployment and to stabilize prices

26

All the ways by which firms create value for their constituents.

28

 Technologies

employed for creating productsboth physical goods and services for customers

29

to improve a firms performance of internal operations.

Business process technologies are used

Enterprise Resource Planning, or ERP, is a large-scale information system for organizing and managing a firms processes across product lines, departments and geographic locations

30

31

Conditions reflecting the relationship between business and government

Example??

33

 Conditions

including the customs, morals, values and demographic characteristics of the society in which an organization functions

35

Customer preferences and tastes vary both across and within national boundaries. Consumer preferences can vary widely within the same country. Consumer preferences and tastes change over time.

36