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Flashcards in business and the external environment Deck (15):
1

define market conditions

a broad term which includes all the factors that can affect a market

2

what is competition?

a key part of the market conditions and includes the number and power of rivals that a firm faces

3

what are real incomes?

people's incomes adjusted for inflation

4

define gross domestic product (gdp)

the total value of all good and services produced in an economy- the income of a country

5

interest rates are...

the cost of borrowing money for firms and consumers

6

what are demographics?

the size and structure of the population in terms of age, sex, race etc

7

what's the environment in business?

this deals with the environmental effect of any form of business activity

8

define fair trade

this a movement which promotes improved trading terms for producers in ledc's to give them higher incomes. it has a labelling system for accredited firms

9

what are the effects of a change of interest rates on demand and costs?

interest rates are reduced: people are more inclined to borrow as the cost is cheaper and people are more likely to spend
interest rates are increased: people are less inclined to borrow and are likely to save and therefore consumer spending falls

10

a firm took a £100,000 loan to finance when the interest rate was 5.25% calculate their annual interest payments when the interest rate was increased to 6%

£6000

11

what's the age structure of the uk population?

population is ageing. over 7.85 million people aged over 70 and 2025 is forecasted to have 10.44 million

12

what is net migration?

numbers entering the uk minus those leaving the country

13

what's a way that business activity has an effect on the environment?

deforestation
fuel for deliveries- pollution
killing animals and habitats
using resources

14

what would be a disadvantage of recycling and an advantage of recycling?

recycling costs money, however it would give the business a good brand image which may increase customer sales

15

what is demand?

the amount of a particular good or service that a consumer or firm want and can afford to buy at a particular price