A business ecosystem is a network of organizations, including suppliers, distributors, customers, competitors, government agencies, etc., involved in the delivery of a particular product or service through both competition and collaboration.
The idea is that each entity in an ecosystem influences and is affected by others, creating an ever-evolving relationship in which each entity must be flexible and adaptable in order to survive, as in a biological ecosystem.
Ecosystems create strong barriers to entry into the market of new competition, since the ecosystem is already made up of players that allow it to function.
Business Ecosystem Theory was developed by business strategist James Moore in 1993.
An economist is an expert who studies the relationship between a society’s resources and its production or output, using a number of different indicators to predict future trends.
An absolute advantage is when a manufacturer can provide a greater quantity of a product or service for the same price or the same quantity at a lower price than its competitors.
Animal spirits come from the Latin spiritus animalis: “breath that awakens the human mind.” It was introduced by the British economist John Maynard Keynes in 1936.
Autarky refers to a state of self-sufficiency and is commonly used to describe countries or economies that seek to reduce their dependence on international trade.
Automatic Stabilizers is a permanent government policy that automatically adjusts tax rates and transfers payments in a way that stabilizes income, consumption, and business spending over the business cycle.
The balance of trade (BOT) is the difference between the value of a country’s imports and exports over a given period and is the largest component of a country’s balance of payments (BOP).
“Best Effort” is a legal term that represents the obligation of a party to a contract to take all possible steps to fulfill the terms of the agreement.