EXTERNAL INFLUENCES ON BUSINESS ISSUES 0.0 / 5 ? Business Studies-IGCSECIE Created by: tella1204Created on: 17-03-20 03:31 GDP Gross Domestic Product - the total value of output of goods and services in a country in one year 1 of 35 Recession A period of falling GDP 2 of 35 Inflation The increase in average price level of goods and services over time 3 of 35 Unemployment People who are willing and able to work but cannot find a job 4 of 35 Economic Growth When a country's GDP increases - more goods and services are produced than the previous year 5 of 35 Balance Of Payments Records the difference between a country's exports and imports 6 of 35 Real Income The value of income, and it falls when prices rise faster than money income 7 of 35 Exports Goods and services sold from one country to other countries 8 of 35 Imports Goods and services brought in by one country from other countries 9 of 35 Exchange Rate The price of one currency in terms of another 10 of 35 Exchange rate depreciation The fall in the value of a currency compared with other currencies 11 of 35 Fiscal Policy Any change by the government in tax rates or public sector spending 12 of 35 Direct Taxes Paid directly from incomes 13 of 35 Indirect Tax Added to the prices of goods and taxpayers pay the tax as they purchase goods 14 of 35 Disposable Income The level of income a taxpayer has after paying income tax 15 of 35 Import Tariff Tax on an imported product 16 of 35 Import Quota Physical limit on the quantity of a product that can be imported 17 of 35 Monetary Policy Change in interest rates by the government or central bank 18 of 35 Exchange rate appreciation The rise in the value of a currency compared with other currencies 19 of 35 Supply Side Policies Trying to increase the competitiveness of industries in an economy against those from other countries 20 of 35 Social Responsibility When a business decision benefits stakeholders other than shareholders 21 of 35 Pressure Group People who want to change business/government decisions by taking action 22 of 35 Private Costs Costs paid for by a business 23 of 35 Private Benefits Gains to a business 24 of 35 External Costs Costs paid for by the rest of society 25 of 35 External Benefits Gains to the rest of society 26 of 35 Social Cost External Costs + Private Costs 27 of 35 Social Benefits External Benefits + External Costs 28 of 35 Sustainable Development Development which does not put at risk the living standards of future generations 29 of 35 Consumer Boycott When consumers decide to not buy products from businesses that do not act in a socially responsible way 30 of 35 Ethical Decision Decision based on a moral code 31 of 35 Globalisation Increase in worldwide trade and movement of people and capital between countries 32 of 35 Free trade agreements When countries agree to trade imports/exports with no barriers such as tariffs and quotas 33 of 35 Protectionism When a government protects domestic businesses from foreign competition using tariffs and quotas 34 of 35 Multinational Businesses Factories, production or service operations in more than one country 35 of 35
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