what is an economic influence
when a business is effected in any way by economic factors
what is inflation
shows how much higher/lower prices are compared with the same month a year before
how is inflation measured
consumer price index - looking at the prices of products commonly bought overtime
how does inflation effect a business
as inflation rises so does the cost of supplies, so cost increases to maintain profit, and profit margins are squeezed
what are exchange rates
the price of one currency compared with another
what is appreciation
a rise in pound against other currencies
what is depreciation
a fall in pound against other currencies
spiced (appreciation)
Strong
Pound
Imports
Cheaper
Exports
Dearer
wpidec (depreciation)
Weaker
Pound
Imports
Dearer
Exports
Cheaper
what are interest rates
the cost of borrowing money
what is taxation
the money citizens pay to the government to keep society running eg. schools, army, roadworks
what is VAT
value added tax can be passed on to consumers or a business can absorb the cost effecting profit margins
what are excise duties
money paid on products that has a negative effect on society
what is the business cycle
demand and output changing overtime
what is boom phase of the business cycle
country has high consumer spending and increased demand
what is recession phase of the business cycle
falling levels of demand means consumers save not spend
what is slump phase of the business cycle
consumer confidante and spending is low, with little investment and high unemployment
what is recovery phase of the business cycle
demand levels improve, consumer confidance increases
what is competition
where more than one seller seeks to sell goods/services to consumers
what does competition impact
the nature of business ownership, nature of a product/service provided, pricing strategies and marketing methods
what is legislation
a set of laws suggested by the government made official by parliament
impact of legislation as a cost
additional cost for training, protection equipment and national minimum wage
name 5 types of legislation
- employee protection law
- consumer protection law
- health and safety work act
- competition policy
- environmental protection
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theme 1 - marketing49
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theme 1 - managing people51
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theme 2 - finance37
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theme 2 - resource management22
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theme 2 - external influences23
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theme 3 - business decisions and strategy (3.1/3.2/3.3)78
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theme 3 - business desicions and strategy (3.4/3.5/3.6)62
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theme 4 - global businesses - 4.135
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theme 4 - global businesses - 4.2 & 4.335
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theme 4 - global businesses - 4.421
