unit 1 LO6 Flashcards
(11 cards)
1
Q
name the factors which effect the external business environment
A
Political
Environmental
Social
Technological
Ethical
Legal
economic
competitive
2
Q
state social factors
A
- demographic issues
- attitudes to work
- disposable income
- social trends
- cultural beliefs
3
Q
state technological factors with an example for each
A
- automation e.g production lines
- purchasing/sales technology e.g e- commerce
- mobile technology e.g contactless payment methods
- communication technology e.g video conferencing
4
Q
state the economic factors
A
- interest rates
- exchange rates
- inflation
- unemployment
- taxation
5
Q
A
6
Q
what are interest rates
A
- the cost of borrowing/the reward for investing savings
- set by the bank of england
7
Q
what are exchange rates
A
- value of one currency compared to another
- affects imports and exports
Strong
Pound
Imports
Cheaper
Exports
Dearer
8
Q
what is inflation
A
- general increase in the price of goods/services
9
Q
what is unemployment
A
people available for work who do not have a job
10
Q
give some examples of environmental factors
A
- energy management
- carbon emissions
- waste reduction
- recycling
- pollution
11
Q
state the political factors
A
- political instability
- a change of government
- government initiatives
