Business organizations today operate in a global economy and deal with other businesses in three primary economic systems, which include planned economies, market economies, and mixed market economies. Many times organizations have operations in multiple countries operating within different economic systems. In order to operate effectively, one must understand how the various market economies manage the five factors of production that include labor, capital, entrepreneurship, physical resources, and information resources.
Chapter 1 discusses the three major economic systems operating in the global economic system and the five factors of production are also defined
Write a 2-3 page paper explaining the three major economic systems operating in the global economic system and demonstrate how each of the five factors of production relates to each of the economic systems. Ensure the following points are addressed.
The three primary economic systems must be defined.
The differences between the three economic systems must be identified.
The five factors of production: labor, capital, entrepreneurship, physical resources and information resources must be defined with examples.
How the five factors of production relate to each of the economic systems must be explained.