Businesses can be defined a number of different ways. Several of these definitions can be used to help understand something about the business from a general perspective. We tend to pay attention to where the business is located (domestic and/or international), the type(s) of market(s) it is involved with, and in most cases, the type of government and degree of control it is involved in with the business. The simplest definitions are for local and domestic businesses because we are accustom to them and understand them better. But for many businesses it is impractical to limit themselves to only domestic customers. Owners demand the most profit out of business as possible, which means for some businesses, to operate globally. Sometimes this requires setting up in foreign countries that have different ways of treating the business and how it operates. For example, the business practices you use in the United States may be very different than the practices you use in South Korea. These differences may be driven by different perspectives of the market, the fluxation in local currency, differences in governmental regulations and involvement, differences in taxation, different means of transportation, etc.
All these factors play a role in the operation, and definition, of a business. The module this week offers a broad look into some of the important fundamental issues and concepts behind any business. There are layers to any business that must be identified and considered, but internally and externally, to get a better idea of issues facing that business.
Think back over the material you read in the module and viewed in the PowerPoint slides for the week to help you answer the following reflection question.
QUESTION: Comparing Free Markets to other competitive markets, explain what you feel, in your opinion, is an important factor that has the greatest impact on a market. Give examples, if you can, to support your position.
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