Unit 3.7 (2) Flashcards
(51 cards)
Labour market laws - pensions act 2008
employers have to pay into an employees pension - businesses fined if not paid
Labour market laws - equality act 2010
protects people from discrimination in the workplace
Environmental legislation
controls pollution in terms of business waste that is disposed of in the air, land and sea
Competition policy
stop collusion (price fixing by businesses agreeing to pay higher prices)
CMA = competition markets authority
Economy
state of a country or region in terms of the production and consumption of goods and services and the supply of money
GDP
value of goods and services produced in the economy - main way of measuring the health of the economy
Taxation and VAT
if the % of VAT goes up then the businesses could pass the extra costs onto the customers. - VAT is now 20%
HRMC
department in the UK that is responsible for collecting tax - tax paid depends on the type of the business and profits.
UK tax for small businesses
- income tax is taken off a business owners salary
- business rates
- National insurance - and by both employee and employer to pay for state pension etc.
- VAT if make over £82,000
UK tax for larger businesses
- Corporation tax = 19%
- VAT at 20%
- business rates
- National insurance contributions
Excise duties
paid by customers on products which have negative effects on society e.g. tobacco and alcohol
Exchange rates
price of one currency in exchange for another
Importance…
- decide price of exports in international markets
- Revenues and profits made overseas
Exchange rates - appreciation
rise in the pound against other currencies - the pound can buy more foreign currency
SPICED
Strong pound imports cheaper exports dearer
WPIDEC
Weak pound imports dearer exports cheaper
Exchange rates - depreciation
a fall in the value of the pound - happened after BREXIT
Inflation
rise in the price of goods in the UK economy
CPI
consumer price index - shows how prices of items has changed over time - expressed as a percentage
Inflation impacts on businesses
higher costs = higher prices for customers
Fiscal policy
relates to government taxation and spending
Fiscal policy aims to stimulate economic growth in a recession
Monetary policy
country’s central bank influences how much money is in the economy
Bank of England uses two tools…
- Bank rate - interest rate that the bank charges
- Quantitative easing - the bank of England can create money digitally
2% inflation is the bank of England’s goal
Trade liberalisation
process by which international trade is made easier through relaxation of tariffs and barriers.
Responsibility of the CMA
Promote competitive markets and investigate mergers which have the potential to limit competition within a market
Benefits of General agreements of trade and tariffs
- New jobs for unskilled workers
- Countries have trade benefits of up to $680 billion annually
