1.5 external factors Flashcards
1
Q
STEEPLE analysis
A
Social Technological Economic Ethical Political Legal Environmental
Useful for examining a firms external environment
2
Q
Macroeconomic objectives
A
GDP ( gross domestic product) - measuring the total value of goods and services produced in a year.
Linked to aggregate demand (total demand in the economy)
Positive growth is a good measure of a country’s economic performance
Patterns of fluctuations un growth is shown on the business cycle
3
Q
Macroeconomic definitions
A
Boom: economy is at its peak there is high spending High business and consumer confidence Low levels of unemployment High investment High profit for business
Recession:
Two consecutive quarters of a fall in GDP (6 months) due to fall in aggerate demand
Unemployment starts to rise
Lower investments
Falling exports
Business that are quite sensitive in income changes will suffer the most (luxury items)
Trough: Bottom stage of recession Last stage of decline High unemployment Low levels of consumer spending Falling GDP Little consumer and business confidence,
Recovery: GDP starts to rise again Output by firms and income starts to increase Consumptions starts to rise More jobs created (cycle repeats )
