1.5 - Growth and evolutions Flashcards
fluctuation in the level of business activity over time (booms, recessions, slumps, recovery and growth)
business cycle
moral principles that are/should be considered in business decision making
business ethics
removal of government rules and regulations that constrain an industry to enhance efficiency and encourage more competition within the industry
deregulation
measures change in GDP of a country over time: occurs if there is an increase in GDP for two consecutive quarters
economic growth
ecological influences that have a direct impact on the operations of an organization
environmental factors
moral values and judgements that society believes businesses ought to consider
ethics
value of a country’s currency in terms of other currencies
exchange rate
measures taken by a government to safeguard it’s industries from overseas competitors
protectionist measures
influences on business related to people in society, their lifestyles and their beliefs
social factors
analytical framework used to examine the opportunities and threats of the external environment
STEEPLE analysis
number of people in workforce who are willing and able to work but cannot find employment
unemployment
increase in exchange rate
rise in import prices (and production prices)
decrease in export prices (being sold for less, so more competitiveness)
depreciating
the value of a country’s money dropping (when compared against another country)
apprieciating
the value of a country’s money increasing (when compared against another country)
decrease in exchange rate
decrease in import prices (and production prices)
increase in export prices (harder to compete)
tariffs (customs duties)
taxes on imported products, raising the price for domestic firms a price advantage
quotas
quantitative limits on the volume or value of imports
subsidies
payments made by a government to domestic businesses as a form of financial aid (reduces cost of production)
embargoes
physical bans on international trade with a certain country, usually due to strategic reasons, severe health and safety concerns, or political conflicts
framework of the STEEPLE factors that are beyong the control of any individual organization
external environment
use of taxation government expenditure
fiscal policy
general prices level in an economy continuously rises
inflation
measure of the price of money in terms of the amount charged for borrowed funds or how much is offered on money
interest rate
use of interest rate policy to affect the money supply and exchange rates in order to influence business activity
monetary policy
influences from the role that governments play in business operations
political factors
