3.6: PESTLEE Flashcards
(32 cards)
As of January 2025, what are three key economic indicators in the UK?
Interest rates at 4.75%, inflation at 2.6%, unemployment stable at 4.3%.
What is the role of the Competition and Markets Authority (CMA)?
To investigate mergers, monopolies, and anti-competitive practices that harm consumers.
What is deregulation and how does it affect markets?
It removes government restrictions to increase competition, reduce prices, and improve efficiency.
List two benefits of privatisation and List two drawbacks of privatisation.
Increased efficiency through competition and profit incentives; government raises revenue through share sales. However there are potential job losses and service cuts; long-term profit loss for the government.
Give two arguments for nationalisation and Give two arguments against nationalisation.
Saves critical businesses, prevents exploitation of consumers, enables infrastructure investment. However there is potential for lack of efficiency due to absence of profit motive; monopolistic practices can reduce service quality
What is the difference between legislation and regulation?
Legislation is the law itself passed by parliament; regulations are detailed rules implementing the law.
Why has Brexit created uncertainty for UK trade?
Delayed trade negotiations and unclear terms discourage investment and harm business confidence.
How can businesses respond to national security risks?
Change suppliers, reroute deliveries, pause trade, or exit affected markets.
Give two benefits and two drawbacks of subsidies.
✔ Boosts supply and competitiveness; ✖ Firms may become reliant and inefficient.
What was the cost of the BP oil spill in 2010, and its wider impact?
Over $65 billion and long-term reputational damage to BP due to severe environmental harm.
How are businesses responding to climate change?
Many claim to act, but some exaggerate progress; real change is gradual and under scrutiny.
How does the UK government intervene in environmental issues?
Via green taxes, legislation like the Environment Act 1995, and monitoring pollution and waste.
What is the purpose of the UK Landfill Tax?
To reduce landfill usage and promote recycling/composting. In 2025, it costs £126.15 per tonne.
How effective are congestion charges in the UK?
Introduced to reduce car use/emissions; effectiveness is debated, leading to price increases (e.g. £15 in London).
What is the financial impact of environmental taxes on UK businesses?
Energy costs increase 15–21%, which may affect global competitiveness compared to countries with lax regulations.
What are the issues with alternative energy sources?
While wind/solar reduce emissions, installation (e.g. concrete for turbines) brings short-term environmental costs.
How can pressure groups affect businesses?
Reputational damage, reduced sales, higher costs due to operational changes, and legal/regulatory pressure.
How can a business respond to pressure group campaigns?
Accept and change, present counter-arguments, pursue legal action, or promote their positive image.
How have consumers changed due to environmental awareness?
They are more likely to choose eco-friendly brands and demand transparency from businesses.
What is the Triple Bottom Line?
A business model focused on balancing profit, people, and the planet (social, environmental, and financial performance).
How have UK firms historically approached new technology?
They’ve been slow adopters, often viewing technology as a threat rather than an opportunity, reducing competitiveness.
How has Starbucks used technology to its advantage?
Partnered with Apple for marketing, offers free WiFi, attracts remote workers and meetings.
How does technology support new product development?
Enables price skimming, creates new markets, attracts customers.
What is EDI and how does it help businesses?
Electronic Data Interchange; it enables real-time data sharing, improving supplier coordination.
