Marketing :: essays research papers

1. A. An economic system is a nations system for allocating its resources among its citizens. Economic systems differ in terms of who owns or controls the four basic factors of production: labor, capital, entrepreneurs, and natural resources. In planned economies, the government all or most factors. In market economies, which are based on the principles of capitalism, individuals control the factors of production. Most countries today have mixed market economies that are dominated by one of these systems but include elements of the other. The process of privatization is an important means by which many of the world’s planned economies are moving toward mixed market systems. 2. A. The most common forms of business ownership are the sole proprietorship, the partnership, the cooperative, and the regular corporation. Each form has several advantages and disadvantages. The form under which a business chooses to organize is crucial because it affects both long-term strategy and day-to-day decision making. In addition to advantages and disadvantages, entrepreneurs must consider their preferences and long-range requirements 3. B. The difference forms of competition advantage are critical to international business. With an absolute advantage, a country engages in international trade because it can produce a product more efficiently than any other nation. But more often, countries trade because they enjoy comparative advantages: They can produce some items more efficiently than they produce other items. The import-export balance including the balance of trade and the balance of payments, and exchange rate differences in national currencies affect the international economic environment and are important element of international business. 4. A. Social responsibility refers to an organization’s response to social needs. Until the second half of the nineteenth century, because business often paid little attention to these needs. Since then however both public pressure and government regulation especially as a result of the great depression of the 1930s and the social activism of the 1960s and the 1970s have forced business to consider the public welfare at least to some degree. A trend toward increased social consciousness, including a heightened sense of environment activism has recently emerged. 5. A Management is the process of planning, organizing, directing, and controlling an organization’s financial, physical, human and information resources to achieve the organization’s goal. Planning means determining what the company needs to do and how best to get to get it done. Organizing means determining how best to arrange a business’s resources and the necessary jobs into an overall structure.