In this paper the complex systems are discussed from the business and economics point of view . It will be showed and motivated that social systems are typically chaotic  and/or non-linear and therefore non-equilibrium or complex systems. It is discussed that the rapid change  global consumer behaviour is underway, that further increases the complexity in the business and management. For successful management under complexity, a following principles are offered: openness and international competition, tolerance and variety of the ideas, self-reliability and low dependence on external help. The paper discusses the opportunities and challenges in management under complexity from macro and micro economic perspective. It is motivated that small economies have good prospects to gain from the global processes underway, if they can demonstrate flexible production , reliable business ethics and good risk management.  In this environment, the challenges for corporate managements are being also permanently changed: the balance between short term noise and long term chaos whose attractor includes customers, shareholders and employees must be found. The paper is concluded with the two financial applications: about debt and risk management. The non-equilibrium economic establishment leads to additional problems by using excessive borrowing; unexpected downturns in economy can more easily kill companies. Finally, the demand for quantitative improvements in risk management is postulated . Development of the financial markets has triggered non-linearity to spike in prices of various production articles such as agricultural and other commodities that has added market risk management to the business model of many companies .
In this chapter the complex systems are discussed in the context of economic and business policy and decision making . It will be showed and motivated that social systems are typically chaotic , non-linear and/or non-equilibrium and therefore complex systems. It is discussed that the rapid change in global consumer behaviour is underway, that further increases the complexity in business and management. For policy making under complexity, following principles are offered: openness and international competition, tolerance and variety of ideas, self-reliability and low dependence on external help. The chapter contains four applications that build on the theoretical motivation of complexity in social systems. The first application demonstrates that small economies have good prospects to gain from the global processes underway, if they can demonstrate production flexibility , reliable business ethics and good risk management. The second application elaborates on and discusses the opportunities and challenges in decision making under complexity from macro and micro economic perspective. In this environment, the challenges for corporate management are being also permanently changed: the balance between short term noise and long term chaos whose attractor includes customers, shareholders and employees must be found. The emergence of chaos in economic relationships is demonstrated by a simple system of differential equations that relate the stakeholders described above. The chapter concludes with two financial applications: about debt and risk management. The non-equilibrium economic establishment leads to additional problems by using excessive borrowing; unexpected downturns in economy can more easily kill companies. Finally, the demand for quantitative improvements in risk management is postulated .
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paper
chapter
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from the business and economics point of view
in the context of economic and business policy and decision making
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, non-linear
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non-linear and therefore non-equilibrium or
non-equilibrium and therefore
A
in
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the
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successful management
policy making
D
a
D
the
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paper discusses the opportunities and challenges in management under complexity from macro and micro economic perspective. It is motivated
chapter contains four applications that build on the theoretical motivation of complexity in social systems. The first application demonstrates
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flexible production
production flexibility
A
The second application elaborates on and discusses the opportunities and challenges in decision making under complexity from macro and micro economic perspective.
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managements
management
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paper is concluded with the
emergence of chaos in economic relationships is demonstrated by a simple system of differential equations that relate the stakeholders described above. The chapter concludes with
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. Development of the financial markets has triggered non-linearity to spike in prices of various production articles such as agricultural and other commodities that has added market risk management to the business model of many companies