3. FAIR TRADE
Fair Trade -> Protect small prodecers
Transparent
Open
Preserve the quality / quantity of
the product
4. FIRMS
firms grow at different rates
Factors - Factors Affecting Performance
According Timpe (1993) factors - factors that affect
performance, :
1. Good performance is influenced by two factors:
a. Internal (private)
High-ability
Work hard
b. External (environmental)
Easy-Works
Help from colleagues - colleagues
A good leader
5.
6. FIRST-MOVER ADVANTAGE
Advantage gained by the first
entrant of a market
Could make a barriers to entry and
can control resources
Sometimes cancelled aut by the
benefits enjoyed by followers such
as : The late-movers learning from
the mistakes made by the
predecessor
7.
8. FORECASTING
o Best guesses about the future
o following economic forecasts has been
likened to driving a car blindfolded,
following directions given by a person
who is looking out of the back window.
o Sam Goldwyn, a movie mogul, "Never
prophesy, especially about the future."
9. FREE RIDING
Getting the benefit of a good or service
without paying for it
The number of people willing to pay for
the good or service is not enough to
cover the cost of providing
The problem can be overcome by
financing the good by imposing a tax on
the entire population.