Business Flashcards
what is a negative externality?
when production/consumption impose external costs on a third party
how does business activity impact the environment?
air pollution
spoiling landscape
waste disposal
noise pollution
how much market share does a business need to be a monopoly?
25%
how could GG toys be more sustainable?
use recycled materials for products
move production back to Bowton
less packaging
factory use renewable energy
How will environmental concerns effect GG toys?
reputation,revenue and profits
external costs
costs to third parties
private costs
cost as a result of production/consumption
social costs
total external+private costs
social costs of factory in china?
job loss in Bowton
pollution in china
less income tax for UK
shipping- environment
social benefits
less Bowton pollution
more jobs china
lower prices
increase dividends
ethical issues regarding GG toys?
unsafe working conditions
unsafe overtime
child labour
low/unfair wages
purchasing economies of scale
discount for buying in large quantities
finacial economies of scale
firm gets bigger it gains more assets, more likely to get cheaper loan as have more security to offer to bank
managerial economies of scale
large firms afford specialists managers increasing efficiency
marketing economies of scale
larger firms more effective methods of marketing reach more people
