business in canada (chapter 7)

refers to the economic conditions in which an organization operates.

1. businesses (to make a profit, managers have to balance the right combination of inputs that allow for efficiency, productivity, and overall firm growth the inputs are referred to as the 5 factors of production)
2. individuals (decide how to spend their money and on what and money is limited, therefore we are subjected to opportunity costs)
3. government (broader role in the economic environment, responsible for making laws, regulations, and policies to manage the country's economy government can influence individual choices with tax credits or business decisions with tax incentives

1. natural resources (ie. Land and raw materials)
2. labour (ie. workers)
3. capital (ie. buildings, machinery and equipment)
4. knowledge (ie. workers with specialized education)
5. entrepreneurs (ie. people who start up businesses)

1. market economy- an economic system in which individuals, rather than the state, own most of the resources. (Canada)
2. communism- leading to a society in which all property is publicly owned and each person works and is paid according to their abilities and needs. (Russia)
3. socialism-theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole. (Sri Lanka)
4. mixed economy- a system that combines aspects of both capitalism and socialism (UK)

Microeconomics is the study of smaller components of the economy, such as individuals and businesses.
Macroeconomics considers data for large groups of people and firms. Examples of macroeconomic issues include unemployment, consumer spending, inflation, gross domestic product, and price levels.

horizontal size of table:
types of competition
1. Perfect/ Pure
2. monopolistic- relating to a person or business that has exclusive possession or control of the supply of or trade in a commodity or service.
3. oligopoly- when a few companies exert significant control over a given market.
4. monopoly- the exclusive possession or control of the supply of or trade in a commodity or service. (Banks)

vertical size:
- barriers to entry
- number of sellers
- firm price setter
- product differentiation
- size of firms

table pg. 194

- economic growth (business cycle, expansionary phase, contraction phase, trough)
- economic stability (GDP, GNP, Real GDP, Nominal GDP)
- employment (productivity, balance of trade, exchange rates)
and national debt

Commodity Price Volatility:
Canada is a major exporter of commodities such as oil, natural gas, and minerals. The Canadian economy is sensitive to fluctuations in global commodity prices. Declines in commodity prices can negatively impact the country's export revenues and economic growth.


Global Economic Conditions:
Canada's economic performance is closely tied to the health of the global economy. Economic slowdowns in major trading partners, such as the United States, China, or the European Union, can reduce demand for Canadian exports and negatively affect economic growth.

HDI: human development index
GNHI: gross national happiness index

occurs when only frictional unemployment exists and no structural or cyclical unemployment is present. In this case, the quantity of labour demanded equals the quantity of labour supplied. There will likely always be a certain level of frictional unemployment since people will always be entering and exiting the workforce.

the total amount of frictional and structural unemployment combined. Unemployment exists when there is no cyclical unemployment

- frictional: the result of workers searching for new employment or transitioning from their old jobs to new ones.
- cyclical/ cycle: occurs with changes in economic activity over the business cycle
- structural: occurs when workers are unable to fill available jobs because they lack the skills
- seasonal

- consumer spending
- government regulations
- labour market conditions