Final answer:
Understanding customers and the marketplace allows businesses to navigate the increased competition due to technological and globalization shifts. Economic theories and models provide valuable insights into market behaviors and trends. Knowledge of goods and services markets and labor markets is essential for successful business operations.
Step-by-step explanation:
Understanding customers and the marketplace is fundamental to being successful in business due to the significant shifts brought about by technology and globalization. Technological advancements, including the rise of the internet, have expanded the reach of consumers and businesses alike, allowing for interactions and transactions globally. This has increased the competition faced by local businesses, as consumers can easily find suppliers from anywhere in the world.
Goods and services markets and labor markets are central concepts in this new global marketplace. The goods and services market refers to the transactions of physical products and intangible services between businesses and consumers, while labor markets cover the supply and demand for labor force, where employment and wages are determined. The understanding of economic theories and models is crucial as they provide insights into market behaviors, guide business strategies, and help predict future market trends.