A2 Part 1 - Analysing the Strategic Position of a Business - Political and Legal Change Flashcards Preview

AQA A level Business > A2 Part 1 - Analysing the Strategic Position of a Business - Political and Legal Change > Flashcards

Flashcards in A2 Part 1 - Analysing the Strategic Position of a Business - Political and Legal Change Deck (42)
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What are competition laws?

Laws that promote or seeks to maintain market competition by regulating anti-competitive conduct by companies


What are employment laws?

Laws relating to the rights and responsibilities of workers


What is environmental legislation?

Aim to protect the environment from harmful actions by companies


What is infrastructure?

The basic physical and organisational structures and facilities needed for the operation of a society or enterprise.


What is GDP?

Gross Domestic Product. Measures the value of goods and services produced in an entire economy over a period of time


What is a recession?

Negative growth in 2 consecutive quarters


What is taxation?

Money paid to the government to fund their spending


What is an exchange rate?

The price of buying one currency against another


What is inflation?

A sustained rise in the average level of prices over a period of time


What is the Consumer Price Index?

A technique used by the government where they take a typical basket of goods to measure their price each calendar month. The prices are then compared with the same calendar year in the previous year to give an annual inflation rate.


What is deflation?

Reduction in general level of prices in an economy


What is Fiscal policy?

Means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy


What is Monetary policy?

Bank of England (central bank) controlling the supply of money in a country. It does this by controlling interest rates


What are interest rates?

The price of borrowing money


What is austerity?

Difficult economic conditions created by government measures to reduce public expenditure


What negative effects can high inflation have on businesses?

  • Negativley effectws currency exchange rates
  • Export slump
  • Rising prices in the UK makes goods and services uncompetitive on a global scale
  • High inflation in the UK may persuade some businesses to move location to other countries
    • Increased unemployment and reduced consumer confidence


What effect can expansionary fiscal policies have on businesses?

Increased government spending means more opportunities for businesses

E.g. new road building programme creates demand for construction companies


Why may higher interest rates be good for a business?

It can often be a good time to borrow money because when the time comes to repay the loans the payment should be less


What is protectionism?

Any attempt to impose restrictions on trade in goods and services. Countries opting to impose restrictions on foreign imports.


What are tariffs?

A tax or duty that raises the price of imported goods and services and causes the level of imports in a country to fall


What are quotas?

Quantitiative limits on the level of imports allowed or a limit of the value of of imports permitted into a country in a given period


What are intellectual property laws?

Rules for securing and enforcing legal rights to inventions, designs and legal works


What are technical barriers to trade?

Increasing product compliance costs and imposing monitoring costs on exports agencies


What are export subsidies?

A payment to encourage domestic production by lowering their costs


What are domestic subsidies?

Government help for domestic companies facing financial problems


What is import licensing?

Government grants importers the license to import goods


What is free trade?

Countries agree to not impose tariffs, quotas or other restrictions on each other


What are trading blocs?

Groups of countries have arranged themselves into trading blocs where all have agreed to free trade


What is a soft BREXIT?

Staying in a single market but leaving the EU


What is a hard BREXIT?

Leaving the EU and single market completley