UNITA’ 1
BUSINESS: exists to identify people’s needs and wants and to make goods/services that will
satisfy them.
COMMERCE TRADE
Describe the sale and distribution Commercial activity of buying and selling
of goods and services good and services
HOME FOREIGN
(bought inside a country) (different countries)
IMPORT EXPORT
Bought from Sold to
a foreign seller a foreign buyer
SECTOR OF PRODUCTION
PRIMARY SECTOR: natural resources of the Earth: agriculture, mining, forestry, fishing
SECONDARY SECTOR: finished goods from naturals materials: making food,
manufacturing cars, building industry
TERTIARY SECTOR: services to: consumers; other businesses (retailing, transport,
education, banking, tourism
ECONOMIC SYSTEMS
PLANNED COMPANY: Goverment decides= what/how products should made, who should
get them [North Korea and China]
FREE MARKET: Consumers decides= what to buy, what should be produced and in what
quantity (controlled by supply and demand) [USA and Japan]
MIXED ECONOMY: (combo of planned company and free market) Private companies are
free to compete for most goods and services; but the Government provides other services
(public transport, education and health care)
MATURE MARKETS
Reached a state of equilibrium marked by a lack of significant growth and has balanced
supply and demand.
Companies supply a stable number of goods that matches consumer demand. Profits fixed.
[North America, Western Europe and Japan]
FOUR ASIAN TIGERS [South Korea, Singapore, Taiwan and Hong Kong]
Despite their lack of natural resources, they supported developmente by producing
manufactured goods imported form raw materials
EMERGING MARKETS: BRIC and The Next Eleven
