Understanding Business and Globalization: Consumer Choice, Private Enterprise, and Global Market Integration

University:
California State University, Northridge
Course:
BUS 104 | Introduction to Business
Academic year:

2023
Views:

30

Pages:

2
Author:

Mehrez M.

Intro to business notes Benefits of Business: Innovation, employment Surplus: A surplus of products compared to the demand for it. Often leads to losses Shortage: A shortage of products compared to the demand for them. Loss of potential revenue and profit. Private Enterprise system: Allows business to operate with limited government interference Elements of a Private Enterprise system: Private property rights, Trademark, and copyright, freedom of choice ( in terms of products and service, freedom to charge whatever u wish),Competition, Perfect competitionPrices are only determined by supply and demand as no individual firm Can influence the price of the product. This scenario has a lot of firms and it is easy for firms to enter and/or leave the market. Monopolistic competition- One firm has a major influence. Not a lot of firms, a lot more buyers than sellers Oligopoly: Only a few large sellers or suppliers. Entry from new firms is hard due to the capital required to even initiate business. Business -an organization that provides goods or services to earn profits. Profits -difference between a business’s revenues and its expenses 1. Consumer choice in demand -They have freedom of choice because it is their money -Consumer or customers have freedom of choice -In turn, businesses must take into account in consumer demand as shown through want and needs to get profits 2. Opportunity and Enterprise -Unmet consumer demands provide promising opportunities for potential business success 3. The benefits of business -They produce most of the goods and services consumed -They employ most working people -They create new innovations -They provide opportunities for new businesses to serve as suppliers -The businesses contribute to the quality of life and the standard of living in a society -They provide incomes, taxes to support the government, they support charities and community leadership. Globalization of markets: - Merging of distinct and separate national markets into one huge global marketplace - Conversing consumer tastes and preferences on some global norm Globalization of production: - Sourcing goods and services from different locations around the world Drivers of globalization: - Declining barriers to trade and investment - Technological change Technological advancements: - Microprocessors and telecommunications - Internet and the World Wide Web - Transportation technology Globalization and the poor: - Critics gap between rich and poor has become much larger nowadays…