I don't listen lecture for a long time because of many reasons. So i try to take note another chappter of internet lesson today. Basically, i understand it widely in the way i had read from a book before but my knowledge is not deeply. That is why i should read more on my subject, but i think many books connected to business is difficult to choose the best one. Finally i think i will search something what i don't understand.
This is my note-taking of this lesson:
1. Business: Definition
- organized effort of individual and organisation.
- to produce and sell product--> profit
(profit is so important for enterprise to do business and for shareholder, customer)
2. Fundamental Business Resources:
- Human resource
- Information resources: know partner, customer
- Material resource(for manufacturing)
- Financial resource
--> Businesses must combine aff 4 resources to produce goods and supply service
3. Economic system: society's rules: allocating its resources--> produce, distribute goods and service for consumption.
- Impacts economic growth and development.
- Different society as different approach.
4. Types of economic system:
- Communism: everyone have the same benefit, without differrent classes
- Socialism: distribute based on needs, reallocate resources, get higher tax to provide social programme. Everyone don't have high income individually because they work hard, they pay more tax.
- Capitalism: business really sastisfy, don't react well, have a lot of mechandise of goods
5. Key feature of US 'Free Enterprise' system:
System of business in which individual are free to produce, sell
- Customer freedomm of choice
- Private ownership of land and real property
- Competition: among business for the customer's dollar
- Supply and demand: determined by customers'demand
ex: my money is my choice, can get and decide, but careful in terms of procedure. It doesn't work well bu law.
- Circular flow: of money for labour, resource and capital exchang
- Business cycles: driven by growth and contraction--> profit motives for reinvestment
6. Circular Flow of resource in ' Free Economics' system:
I have drawn a diagram on this section (circular flow), but i don't know why i can't copy and paste here.:-(
First disadvantage of this website i found.
7. Types of competition:
Competition - the rivalry mong businesses for sales to potential customer
- Pure competition: many sellers and buyers--> must accept going price
- Monopolistic competition: many buyers, large sellers--> buyers compete with product differences.
- Oligopoly: few Seller--> each Seller consider price control
- Monopoly: only 1 seller--> buyer complete control overprice
+ Natural monopoly: require huge capital
+ Legal monopoly: with partner, copyright or trademark (but a lot od money on design, advertisment)
Short video clip about USA economy:
USA 's business: Function of value production: you can compete in global world.
Expenditure is changing: 95% world population outside USA, a lot of people dirnk a alcohol because some companies oversea increase their profit by cheap row material (not available in their countries) or they adapt new technology.
A company has 2: comparetive advantages, absolutely advantages, for example, Brazil has advantage of producing coffee, South Afria has advantage of dimond.
Technology can do product better in quality, cheaper in price. Marketing is a key effect on brandname.
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