3.1.3 Flashcards
1
Q
External environment
A
The external environment comprises those external forces that can influence a business’s activities eg: DEMOGRAPHIC FACTORS
MARKET FACTORS
ENVIRONMENTAL AND SOCIAL FACTORS
ECONOMIC FACTORS
2
Q
Costs
A
value paid or to be paid
for the acquisition of goods and
services by businesses
3
Q
Demand
A
The amount customers are willing and
able to buy at a set price at any given
point in tim
4
Q
Interest rates
A
Set by Bank of England
Reward for saving or cost of borrowing
5
Q
Fair trade
A
Selling fair trade products allow businesses to charge
higher prices without an unacceptable loss of sales.
6
Q
assessing the external environment
A
PESTLE
political, economic, social, technological, legal, environmental
