1.5.5 External influences Flashcards
What are the benefits of technology?
Helped reduce running costs and wastage whilst increasing productivity, competitiveness, innovation, speed, accuracy
What are the criticisms of technology?
Costs money to buy, install, and train staff to use, maintain and replace
Job losses, loss of traditional skills and the demotivation of staff
What is the purpose of employment law?
To ensure workers:
Work in a safe environment
Receive fair wages
Are treated equally
Do not work many hours
treated fairly if made redundant
What is the purpose of consumer rights act?
Protects consumer rights when buying products from businesses
What is the purpose of trading standards authority? (TSA)
Local government service that regulates and enforces to ensure the public is protected from businesses selling counterfeits, inaccurate measure and inaccurate weight of goods
What is the purpose of advertising standards authority? (ASA)
Ensures all business advertising is accurate and true.
Also deals with complaints form the public about advertising
What is the purpose of environmental laws?
Minimise risk to the environment and to the health of the public
What is the purpose of tax laws?
Ensure businesses are paying the correct taxes to the government
What is the purpose of competition law?
Ensure no businesses becomes dominant and that prices are fair
What does SPICED stand for?
Strong
Pound
Imports
Cheap
Exports
Dear
What happens if interest rates are high?
Costs go up
Expensive to borrow
Businesses are likely to invest
Consumers with mortgages etc tend to have less income, so reduce their spending, which means fewer sales
What happens if interest rates are low?
Consumers tend to have more money to spend
Why is inflation bad for businesses?
Increases costs for businesses, reducing profits, unless businesses pass these costs on to their customers
