Fundamentals of business

Topics: Economics, United States public debt, Macroeconomics Pages: 2 (342 words) Published: October 4, 2013
Organizational boundary:
Boundary which separates the organization from its environment. External Environment:
Factor beyond the organizational boundary that effects it, for example: general and local economic conditions
political-legal considerations
social issues
global environment
issues of ethical and social responsibility
the business environment itself

The economic environment:
The conditions of the economic system in which an organization operates.

Key economic goals:
Aggregate output
The measure of economic growth. Therefore, the total quantity of goods and services produced by an economic system in a given period of time. Standard of living
Total quantity and quality of goods and services that a countries citizens can purchase with their currency.

Gross Domestic Product (GDP)
The total value of all goods and services produced within a given period by a national economy through domestic factors of production, regardless of who owns the factors of production. Gross National Product (GNP)

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. Productivity
A measure of economic growth that compares how much a system produces with the resources needed to produce it. Improved productivity allows more output with the same inputs. As supply increases, prices drop, consumers can purchase more, and the standard of living improves. Balance of Trade

Equals the economic value of all the products that a country exports minus the economic value of the products it imports. A negative balance of trade (trade deficit) results when a country imports (what it buys from other countries) exceeds it exports (what it sells to other countries). A trade surplus (positive balance of trade) results when a country exports more than it imports. National Debt

The amount of money that the government owes its creditors. Canada is...
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