REVISING
BUSINESS AND ITS ECONOMIC BACKGROUND
Index
Wants
Services
Goods
Needs
Sectors of production
Trade
Commerce
Economic systems
Mature and emerging markets
NEEDS
Needs are those items that are necessary for you to live a healthy and safe life.
WHAT DO WE NEED?
TRY TO ANSWER USING THESE USEFUL WORDS
VERBS
ADJECTIVES
NOUNS
WATER CLOTHES HOUSE FOOD SUNLIGHT INSECTS COLD
TO KEEP TO PROTECT TO COVER TO STAY TO GIVE TO LIVE
WARM HEALTHY SAFE
...AND MORE
FROM IN ORDER TO OURSELVES IN
WANTS
Wants are those items that may improve our quality of life but are not entirely necessary. Can you think of any examples? Let's brainstorm together!
question
to those who wait
GOODS
WHAT ARE THEY?
GOODS
They are tangible items that you can touch, feel and see.
Items, articles, products that customers purchase from companies.
When a consumer purchases a good, the possession of the good passes from the seller to the buyer.
Consumers might use a good a single time or multiple times.
SERVICES
THE SERVICE CAN COME FROM AN INDIVIDUAL OR A GROUP.
THE RECEIVER OF THE SERVICE PAYS FOR THE SERVICE.
THE CONSUMER OF THE SERVICE USES IT BUT THEY DO NOT OWN IT.
THE SERVICE PROVIDER OWNS THE SERVICE.
The production, distribution and consumption of goods and services underpins all economic activity and trade
NOW REWRITE THE SENTENCE USING THE VERB: TO DEPEND ON
WHAT IS TRADE?
It is an economic activity that involves buying and selling of different goods and services between two or more parts.
Trade can be divided into
HOME TRADE
FOREIGN TRADE
WHEN GOODS AND SERVICES ARE SOLD AND BOUGHT INSIDE THE SAME COUNTRY
WHEN GOODS AND SERVICES ARE SOLD IN
EXPORT
OR BOUGHT FROM ANOTHER COUNTRY
IMPORT
COMMERCE
Commerce is a broader term that describes the distribution and exchange of goods and services from the manufacturer to the last consumers.
What kind of activities does it include?
sectors of production
Production can be divided into three sectors:
PRIMARY SECTOR
SECONDARY SECTOR
TERTIARY SECTOR
tHE PRIMARY SECTOR INVOLVES
THE EXTRACTION AND PRODUCTION OF THE NATURAL RESOURCES OF THE EARTH
tHE SECONDARY SECTOR TRANFORMS
RAW MATERIALS TO MAKE FINISHED GOODS.
tHE TERTIARY SECTOR PROVIDES
SERVICES TO THE CONSUMER.
QUATERNARY SECTOR
A subcategory has emerged within the tertiary sector: the so called quaternary sector, which provides know-how to business through information and communication technologies, consultancies and reserch.
WHAT ABOUT THE UK?
British economy is mostly based on finance and banking: London has been a major financial centre for hundreds of years.
17.83 PERCENT OF TOTAL GDP COMES FROM THE MANUFACTORING INDUSTRY
THE PRIMARY SECTOR PLAYS A MINOR ROLE: ONLY 11,27 COMES FROM FARMING AND FISHING.
70,9 PERCENT COMES FROM THE SERVICE SECTOR AND TOURISM.
WHAT DOES GDP STAND FOR? GROSS DOMESTIC PRODUCT.
WHAT IS GDP?
THE TOTAL VALUE OF GOODS
PRODUCED
AND SERVICES
PROVIDED
IN A COUNTRY
IN A YEAR.
ECONOMIC SYSTEMS
TRADITIONAL ECONOMY
DUAL ECONOMY
FREE MARKET SYSTEM
PLANNED ECONOMY
traditional economy
It is a system where tradition guides economic decisions, such as production and distribution. What does it depend on?
It depends on agriculture, fishing, hunting, gathering, etc.
free market system
It is also known as capitalism. It is an economic system where the market is allowed to decide the prices of goods and services based on the forces of supply and demand.
The customers can choose from a variety of competing products.
free market system
The government does not intervene in a free market system.
The role of the government is limited to creating the rules that every company must follow to guarantee fair competition and health and safety requirements.
dual economy
It is also known as mixed economy system. It is an economic system where the private and the public enterprise coexist.
Dual economy protects private property but allows government to interfere in economic activities: the government sustains economic growth while protecting people from excess of competition.
planned economy
It is an economic system where economic decisions are made by the government. The government determines which sorts of goods to produce, which services to provide, how they are to be priced and allocated.
planned economy
Planned economy gives the government dictatorship type of control over the resources of the country.
Planned economies can provide stability, bu can limit the growth of a country by restricting innovation.
MATURE AND EMERGING MARKETS
MATURE MARKETS
EMERGING MARKETS
- They are in the process of development, usually by means of rapid growth and industrialization, moving away from their traditional economies (which rely on agriculture and export of raw materials) and becoming more and more integrated with global economy; - They are in countries which have lower standards of living than developed countries and less infrastructure; - Investors seek emerging markets for the prospect of high returns but they also run risks because of political instability, domestic infrastructure problems and currency volatility of these countries;
-The don not significantly grow anymore; - They are in the most economically advanced countries, with better-develped infrastructures and higher standards of living; -Most of them are to be found in North America, Western Europe and Japan;
PLEASE NOT: EMERGING MARKET ECONOMIES ARE CLASSIFIED IN DIFFERENT WAYS BY DIFFERENT OBSERVERS.
BEM: BIG EMERGING MARKets
CHINA INDIA INDONESIA SOUTH KOREA
TURKEY
OTHER MAJOR EMERGING COUNTRIES
EGYPT IRAN NIGERIA PAKISTAN RUSSIA SAUDI ARABIA TAIWAN THAILAND
POLAND
ARGENTINA BRAZIL
SOME NAMES...
INTERNATIONAL MONETARY FUND (IMF)
MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI)
STANDARD AND POOR'S (S&P)
DOW JONES
Each of these institutions can: - remove a country from its list by passing it to a developed nation or downgrading it to a border nation; - downgrade developed nations to a emerging market (as happened to Greece in June 2013).
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REVISING
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Transcript
REVISING
BUSINESS AND ITS ECONOMIC BACKGROUND
Index
Wants
Services
Goods
Needs
Sectors of production
Trade
Commerce
Economic systems
Mature and emerging markets
NEEDS
Needs are those items that are necessary for you to live a healthy and safe life.
WHAT DO WE NEED?
TRY TO ANSWER USING THESE USEFUL WORDS
VERBS
ADJECTIVES
NOUNS
WATER CLOTHES HOUSE FOOD SUNLIGHT INSECTS COLD
TO KEEP TO PROTECT TO COVER TO STAY TO GIVE TO LIVE
WARM HEALTHY SAFE
...AND MORE
FROM IN ORDER TO OURSELVES IN
WANTS
Wants are those items that may improve our quality of life but are not entirely necessary. Can you think of any examples? Let's brainstorm together!
question
to those who wait
GOODS
WHAT ARE THEY?
GOODS
They are tangible items that you can touch, feel and see.
Items, articles, products that customers purchase from companies.
When a consumer purchases a good, the possession of the good passes from the seller to the buyer.
Consumers might use a good a single time or multiple times.
SERVICES
THE SERVICE CAN COME FROM AN INDIVIDUAL OR A GROUP.
THE RECEIVER OF THE SERVICE PAYS FOR THE SERVICE.
THE CONSUMER OF THE SERVICE USES IT BUT THEY DO NOT OWN IT.
THE SERVICE PROVIDER OWNS THE SERVICE.
The production, distribution and consumption of goods and services underpins all economic activity and trade
NOW REWRITE THE SENTENCE USING THE VERB: TO DEPEND ON
WHAT IS TRADE?
It is an economic activity that involves buying and selling of different goods and services between two or more parts.
Trade can be divided into
HOME TRADE
FOREIGN TRADE
WHEN GOODS AND SERVICES ARE SOLD AND BOUGHT INSIDE THE SAME COUNTRY
WHEN GOODS AND SERVICES ARE SOLD IN
EXPORT
OR BOUGHT FROM ANOTHER COUNTRY
IMPORT
COMMERCE
Commerce is a broader term that describes the distribution and exchange of goods and services from the manufacturer to the last consumers.
What kind of activities does it include?
sectors of production
Production can be divided into three sectors:
PRIMARY SECTOR
SECONDARY SECTOR
TERTIARY SECTOR
tHE PRIMARY SECTOR INVOLVES
THE EXTRACTION AND PRODUCTION OF THE NATURAL RESOURCES OF THE EARTH
tHE SECONDARY SECTOR TRANFORMS
RAW MATERIALS TO MAKE FINISHED GOODS.
tHE TERTIARY SECTOR PROVIDES
SERVICES TO THE CONSUMER.
QUATERNARY SECTOR
A subcategory has emerged within the tertiary sector: the so called quaternary sector, which provides know-how to business through information and communication technologies, consultancies and reserch.
WHAT ABOUT THE UK?
British economy is mostly based on finance and banking: London has been a major financial centre for hundreds of years.
17.83 PERCENT OF TOTAL GDP COMES FROM THE MANUFACTORING INDUSTRY
THE PRIMARY SECTOR PLAYS A MINOR ROLE: ONLY 11,27 COMES FROM FARMING AND FISHING.
70,9 PERCENT COMES FROM THE SERVICE SECTOR AND TOURISM.
WHAT DOES GDP STAND FOR? GROSS DOMESTIC PRODUCT.
WHAT IS GDP?
THE TOTAL VALUE OF GOODS
PRODUCED
AND SERVICES
PROVIDED
IN A COUNTRY
IN A YEAR.
ECONOMIC SYSTEMS
TRADITIONAL ECONOMY
DUAL ECONOMY
FREE MARKET SYSTEM
PLANNED ECONOMY
traditional economy
It is a system where tradition guides economic decisions, such as production and distribution. What does it depend on?
It depends on agriculture, fishing, hunting, gathering, etc.
free market system
It is also known as capitalism. It is an economic system where the market is allowed to decide the prices of goods and services based on the forces of supply and demand.
The customers can choose from a variety of competing products.
free market system
The government does not intervene in a free market system.
The role of the government is limited to creating the rules that every company must follow to guarantee fair competition and health and safety requirements.
dual economy
It is also known as mixed economy system. It is an economic system where the private and the public enterprise coexist.
Dual economy protects private property but allows government to interfere in economic activities: the government sustains economic growth while protecting people from excess of competition.
planned economy
It is an economic system where economic decisions are made by the government. The government determines which sorts of goods to produce, which services to provide, how they are to be priced and allocated.
planned economy
Planned economy gives the government dictatorship type of control over the resources of the country.
Planned economies can provide stability, bu can limit the growth of a country by restricting innovation.
MATURE AND EMERGING MARKETS
MATURE MARKETS
EMERGING MARKETS
- They are in the process of development, usually by means of rapid growth and industrialization, moving away from their traditional economies (which rely on agriculture and export of raw materials) and becoming more and more integrated with global economy; - They are in countries which have lower standards of living than developed countries and less infrastructure; - Investors seek emerging markets for the prospect of high returns but they also run risks because of political instability, domestic infrastructure problems and currency volatility of these countries;
-The don not significantly grow anymore; - They are in the most economically advanced countries, with better-develped infrastructures and higher standards of living; -Most of them are to be found in North America, Western Europe and Japan;
PLEASE NOT: EMERGING MARKET ECONOMIES ARE CLASSIFIED IN DIFFERENT WAYS BY DIFFERENT OBSERVERS.
BEM: BIG EMERGING MARKets
CHINA INDIA INDONESIA SOUTH KOREA
TURKEY
OTHER MAJOR EMERGING COUNTRIES
EGYPT IRAN NIGERIA PAKISTAN RUSSIA SAUDI ARABIA TAIWAN THAILAND
POLAND
ARGENTINA BRAZIL
SOME NAMES...
INTERNATIONAL MONETARY FUND (IMF)
MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI)
STANDARD AND POOR'S (S&P)
DOW JONES
Each of these institutions can: - remove a country from its list by passing it to a developed nation or downgrading it to a border nation; - downgrade developed nations to a emerging market (as happened to Greece in June 2013).
#agreattitle
With this feature...
You can add additional content that excites your audience's brain: videos, images, links, interactivity... Whatever you want!
#awesomeheadline
With this feature...
You can add additional content that excites your audience's brain: videos, images, links, interactivity... Whatever you want!
#awesomeheadline
With this feature...
You can add additional content that excites your audience's brain: videos, images, links, interactivity... Whatever you want!
#awesomeheadline
With this feature...
You can add additional content that excites your audience's brain: videos, images, links, interactivity... Whatever you want!