Business and the political environment Flashcards
Why does the government encourage enterprise?
Because it benefits the economy, new businesses increase productivity and create new jobs.
What are some of the governments strategies for encouraging enterprise?
Government schemes allowing low interest rate borrowing for enterprises.
Reduced national insurance bill by £200
What is infrastructure made up of?
Roads, railways, pipes and wires.
Why are improvements in infrastructure good?
They are good because they make businesses more productive
Where are the infrastructure policies laid out?
In the National Infrastructure Plan,
How does the government encourage private investment into infrastructure projects?
The UK Infrastructure Bank means that private lenders will be repaid if the investment fails and meets the requirements.
What is the EU’s System to reduce greenhouse gas?
Emissions Trading System, it gives greenhouse gas emission allowances.
How can businesses breaking regulations be punished?
Fine or prosecuted
What do tariffs do?
Discourage international trade
What would removing tariffs do?
Make it easier to trade and cheaper.
Why do governments use Quotas?
In order to protect their own economies and job
What is a Quota
It limits exports or imports
What is it called when a government protects its economy
Protectionist Policy
