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When the business environment is stable, meaning that the economy is healthy and therefore businesses can be profitable.

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12y ago

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How Environment affects business activities?

Environment is affected by business


What are the internal and external factors in business environment?

Some internal factors that impact the business environment include competitors and business resources. External factors that affect the business environment barriers to entry and government regulations.


What are static and dynamic gains of trade?

Static Gains of Trade: Reduced costs from economies of scale Efficiency gains from exploiting comparative advantage Reduction in distortion from imperfect competition Increased product variety Dynamic Gains of Trade: Benefits from trade that accumulate over time in addition to static gains from trade Static Gains of Trade: Reduced costs from economies of scale Efficiency gains from exploiting comparative advantage Reduction in distortion from imperfect competition Increased product varietyDynamic Gains of Trade: Benefits from trade that accumulate over time in addition to static gains from trade.


Who can tell you what is the difference between a Baumol Static Revenue-Maximization Model with a Dynamic one?

The main difference is that in the dynamic model the profit is reinvented allowing for more growth in the future, so it is a trade off between profit now or higher profits later, the management will need to get the shareholder to agree on that, a trust must be established between the shareholders and management. Hence, int he dynamic model, the minimum profit is not actually a constraint as it is in the static model.


Describe characteristics of dynamic and stable enviorenments?

Dynamic, as the name suggests, is always changing. It is very hard to follow a dynamic environmentA stable environment is something that doesn't change or doesn't change often.