Chapter 13: External Factors (Version)

Question 1

Increased Consumer Awareness

Answer 1

Consumers have higher expectations and access to product information, leading businesses to be more customer-focused.

Question 2

Changing Demand Patterns

Answer 2

Modern lifestyles and online businesses have shifted demand towards home-delivered goods and services.

Question 3

Increased Numbers of Women at Work

Answer 3

More women combining family life with employment have increased the labour supply and contributed to the growth of new businesses.

Question 4

More Part-Time Workers

Answer 4

The rise in part-time work has improved business flexibility with adaptive labour.

Question 5

Urbanisation

Answer 5

Large migrations from rural to urban areas have provided more labour and created new markets.

Question 6

Development of New Technology

Answer 6

New technology drives innovation, reduces costs as it allows for capital-intensive production, and creates new market opportunities.

Question 7

Technology in the Primary Sector

Answer 7

Mechanisation and chemical advancements in agriculture have reduced costs and increased crop yields.

Question 8

Technology in the Secondary Sector

Answer 8

Robots and machines have automated production, reducing costs and increasing efficiency 24/7.

Question 9

Technology in the Tertiary Sector

Answer 9

Automation in hotels, internet banking, and online retail have significantly reduced costs.

Question 10

Use of IT

Answer 10

IT reduces administration and communication costs, allowing for efficient data processing and instant global communication.

Question 11

Impact of Technological Change

Answer 11

Rapid technological advancements create new product opportunities but shorten product lifecycles.

Question 12

Environmental Issues: Global Warming

Answer 12

Factories and transportation contribute to greenhouse gas emissions, affecting climates and weather patterns.

Question 13

Environmental Issues: Habitat Destruction

Answer 13

Business activities such as deforestation destroy wildlife habitats and impact biodiversity.

Question 14

Environmental Issues: Resource Depletion

Answer 14

Non-renewable resources like oil and minerals are depleting due to increased business activity.

Question 15

Sustainable Development

Answer 15

Encourages resource use that doesn’t compromise future generations, improving compliance, costs, and profits.

Question 16

Political Instability

Answer 16

Unstable regions may deter business development due to risks.

Question 17

Pressure Groups

Answer 17

Organizations like ASH influence business practices, such as discouraging smoking, affecting industries like tobacco.

Question 18

Economic and Political Events

Answer 18

Can cause uncertainty, affecting financial markets and currency values.

Question 19

National Security Measures

Answer 19

Regulations to enhance security may restrict the movement of goods, people, and capital, impacting businesses.

Question 20

Pro-Business Governments

Answer 20

Supportive governments can encourage entrepreneurship and attract foreign investment.

Question 21

Urbanisation Def.

Answer 21

Process of constructing more & more buildings on rural land

Question 22

Capital Intensive

Answer 22

Use of relatively more machinery than labour in production

Question 23

Sustainable Development Def.

Answer 23

Idea that people should satisfy their basic needs & enjoy improved living standards without compromising the quality of life of future generations