303 - PEST Factors - Political

Question 1

Role of Goverment

Answer 1

Manage the economy well
- Low unemplyment
- Stable prices / low inflation
- Economic growth / increases standard of living

Question 2

Subsidies

Answer 2

Is a payment from the government to individuals or business to help cover or reduce cost of production so they can compete and make profits

Question 3

Fiscal Policy

Answer 3

policy for Taxation and Public spending

Question 4

Taxation

Answer 4

Is a payment to the goverment made by businesses and individuals used to fund public services

• Incom Tax
• Value Added Tax ( VAT )
• National Insurance
• Corporate Tax

Question 5

Monetary Policy

Answer 5

Policies to control exchange rates and interest rates

Question 6

Political factors

Answer 6

These factors take into account the political situation of a country, and the world in relation to the country