external environment definitions

Question 1

market conditions

Answer 1

covers a range of factors that affect a market e.g. level of sales, rate of growth, level and strength of competition

Question 2

income

Answer 2

determined by the nation’s GDP (Gross Domestic Product is the value of a country’s total output of goods and services/year) a rise in GDP will increase the incomes of many consumer

Question 3

GDP

Answer 3

the value of a country’s total output of goods and services/year

Question 4

real incomes

Answer 4

incomes are adjusted for the rate of inflation (rise in prices) to show purchasing power

Question 5

interest rates

Answer 5

the price of borrowed money or the reward for saving

Question 6

demography

Answer 6

study of human population in terms of ages, size and immigration. in the uk theres a rising population, aging population, more immigration

Question 7

fair trade

Answer 7

promotes improved trading conditions for producers in less developed countries, e.g. increased wages

Question 8

the environment

Answer 8

businesses contribute to global warming, air pollution, road congestion, water pollution, deforestation etc.