Term 1 - Macro Environment

Question 1

Name the 7 MACRO ENVIRONMENT factors

Answer 1

1) Physcial
2) Economic
3) Technological
4) Social / Cultural / Demographic
5) Legal / Poltical
6) International
7) Institutional

REMEMBER:
TIESLIP ;-)

Question 2

Explain Physical environment
(part of the macro environment)

Answer 2

This is the RESOURCES you need to make products; also infrastructure like transporting goods

Question 3

Explain Economic environment
(part of the macro environment)

Answer 3

• exchange rates
• investment rates
• taxes

(these are all the factors that influence the finances)

Question 4

Explain Techhnological environment
(part of the macro environment)

Answer 4

• new ideas
• new methods

Question 5

Explain Social, demographic, cultural environment
(part of the macro environment)

Answer 5

social - {example: diseases}
cultural - {example: religion}
demographic - {example: population (age/gender)}

Question 6

Explain Legal and political environment
(part of the macro environment)

Answer 6

• laws (legal elements)
• politics (decisions made by government, affecting
  the business)

Question 7

Explain International/global environment
(part of the macro environment)

Answer 7

-other country’s laws
- trade agreements
-foreign relationships

Question 8

Explain Institutional environment
(part of the macro environment)

Answer 8

• government
• controls

(how the government controls the law/policies in a country)

Question 9

Define the term ‘recession’

Answer 9

The GDP shows a negative growth for 2 successive quarters

(Gross Domestic Product)

Question 10

What do we call the rate at which the general level of prices for good and services rises?

Answer 10

Inflation rate