Influences

Question 1

Ethics

Answer 1

The principal of knowing right decisions from wrong ones in business

Question 2

Positives of acting ethically

Answer 2

• Better reputation
• Workers more willing to work

Question 3

Negatives of acting ethically

Answer 3

• Higher cost
• Inefficiency - competitive disadvantage

Question 4

Examples of poor treatment of staff

Answer 4

• Child labour
• Modern day slavery
• Forced labour

Question 5

Examples of poor treatment of customers

Answer 5

Misleading customers (e.g. Nestle telling people to use formula milk)

Question 6

Examples of poor treatment of suppliers

Answer 6

Underpaying (e.g. not using fairtrade)

Question 7

Environmental Considerations

Answer 7

• Waste disposal
• Recycling
• Pollution (noise & air)
• Traffic congestion

Question 8

Impacts of climate change on a business

Answer 8

• Can get tax breaks from Government if they have less carbon emissions
• Businesses need to get closer to zero-emissions in line with legislation

Question 9

Sustainability

Answer 9

• Choose sustainable resources
• Businesses have an ethical duty to keep waste to a minimum

Question 10

Normal Goods

Answer 10

As consumer incomes rise, the demand for these goods rises
(e.g. branded goods)

Question 11

Inferior Goods

Answer 11

As consumer incomes fall, the demand for these goods rises
(e.g. non-branded goods)

Question 12

Economic Climate

Answer 12

The general condition of the economy

Question 13

GDP

Answer 13

Gross Domestic Product - how much the economy produces

Question 14

Interest Rate

Answer 14

Reward for saving and the cost of borrowing

Question 15

Inflation

Answer 15

General rise in the level of prices

Question 16

Unemployment

Answer 16

The number of people out of work who actively seek work

Question 17

Recession

Answer 17

A period of temporary economic decline where the level of economic activity is negative for two consecutive quarters.

Question 18

Disposable Income

Answer 18

The amount of money someone has to spend after essentials (e.g. bills, groceries)

Question 19

Globalisation

Answer 19

The process by which the world is becoming increasingly interconnected a result of more international trade.

Question 20

Globalisation involves…

Answer 20

Buying and selling good and services made in different countries
The movement of workers from company to company
The movement of capital or finance from country to country

Question 21

Globalisation has come from…

Answer 21

Improvements in transport infrastructure around the world - ‘containerisation’
Telecommunications and internet advices
Free trade agreements with no barriers to trade, such as tariffs and quotas

Question 22

Tariffs

Answer 22

Tax on imports

Question 23

Quotas

Answer 23

Limit on volume of imports

Question 24

MNCs

Answer 24

Multinational Companies

Question 25

Benefits of the growth of MNCs

Answer 25

Increasing Sales Spreading Risk (if one economy goes into decline, they are still in other countries) Lower Costs Tax Avoidance Creating demand for host country businesses Taxes and public services Lower prices and costs

Question 26

Drawbacks of the growth of MNCs

Answer 26

Closures of smaller businesses Outflows of money (money may not stay in company)

Question 27

Benefits of MNCs on the business

Answer 27

More successful

Question 28

Benefits of MNCs on the country

Answer 28

Provides with jobs

Question 29

Drawbacks of MNCs on the business

Answer 29

More Competition

Question 30

Drawbacks of MNCs on the country

Answer 30

Doesn’t benefit the country financially Local businesses close

Question 31

International Branding

Answer 31

Creating a recognisable brand, but adapting it to the area that you are in

Question 32

Exchange Rats

Answer 32

The price of one currency represented as another

Question 33

Imports

Answer 33

The sale of good or services into our country

Question 34

Exports

Answer 34

Selling out of the country