Political environment

Question 1

Encouraging enterprise

Answer 1

Government encourages entrepreneurs to set up businesses

Aimed at areas that need economic regeneration

Business enterprise policy
- scheme allowinf enterprises to borrown money with low interest

Question 2

Infrastructure

Answer 2

Transportation, internet access, water, electricity

Allows people and raw materials to move quickly

Ticketmaster, lack of infrastructure due to internet

Question 3

Protecting the environment

Answer 3

Emissions trading system
- gives greenhouse gas allowances to airlines and oil refineries
- can trade or sell allowances

Renewable heat incentive
- pays businesses who use renewable energy to heat their buildings

Question 4

International trade

Answer 4

Tariffs
- tax put on imports to discourage them
- if the imports now cost the same consumers are likely to buy domestic
- countries are reducing tariffs

Quotas
- sets a linit on number of imports and exports
- trying to protect own economy
- put on lambing

Embargos
- ban trade with a particular country
- USA and Cuba

Question 5

Protectionism

Answer 5

The government aims to protect domestic businesses by imposing tariffs/quotas on foreign amd offerring subsidies to domestic

Used in industries such as agriculture

Advantages
- boosts economic growth
- small businesses can grow as they don’t have to compete with multinationals

Disadvantages
- prive of imports rise due to a decreased supply
- other countries may restrict ability to trade in theirs

Question 6

Open trade

Answer 6

Imports and exports aren’t restricted

The UK is mostly open trade

Advantages
- countries benefit from economies of scale as they can specialise
- more choice and lower prices for consumers
- access to larger markets

Disadvantages
- fewer local jobs
- more competitive so likely to need to compete by behaving unethically (child labour)