CHAPTER 6 : EXTERNAL INFLUENCES ON BUSINESS ACTIVITY Flashcards
this deck covers. 6.1: Political and Legal Influences 6.2: Social and Demographic Influences 6.3: Technological Influences 6.4: Influences of Competitors and Suppliers 6.5: International Influences and, 6.6: Environmental Influences
Define Privatisation (6.1)
state owed - investor owned
the act of** *selling *state owned** businesses to investors in the private sector.
Define Nationalisation (6.1)
privately owned - government owned
the *transfer *of privately owned businesses to government ownership and control.
Define** Minimum Wage** (6.1)
not allowed to pay below
Employers are *not allowed to pay below the set minimum wage **per hour/week/month.*
Define what a** Monopoly** is (6.1)
one market, one supplier, no competition
A Monopoly is **a market where there is only one supplier **that has no close competitors.
Define what a Collusion is (6.1)
business co-op to restrict competition. exclusionary
A Collusion is where business agree to work together to restrict competition by** fixing prices and sharing contracts** only between themselves.
Define **Corporate Social Responsibility **(6.2)
AKA: CSR.
involves social audits, helps business stay socially accoutnable.
A business model that helps business be socially accountable to itself and its stakeholders.
(involves Social Audit Reports)
Define Social Audit (6.2)
a report on social impact
A report of the impact a business has on its society.
(usually included in CSR)
Define Demographic (6.2)
society’s structures for populations
A Demographic relates to the structure of a population.
**eg: **in the human population, Kenyans are a demographic.
Define Globalisation (6.2)
more freedom of trade globally
Globalisation refers to** the increasing freedom of movement of goods, capital, and people **around the world.
Define Information Technology (6.3)
AKA: I.T
using tech to G, S, P, C, info
Information Technology relates to the use of electronic technology to gather, store, process and communicate information.
Define Job Enrichment (6.3)
offers more fulfiiling and challenging work to employees
Aims to use worker’s full capabilities by giving them the opportunity to do more fulfilling and challenging work.**
Define Protectionism (6.5)
protects domestic industries. Includes quotes and tarrifs.
Protectionism relates to the use of *barriers to free trade *to protect a country’s domestic industries.
Define Tariff (6.5)
tax tariff
A tax imposed on imported products.
Define Quota (6.5)
import quota
A physical limit on the quantity of imports of certain products.
certain products, means not all products have a quote imposed.
Define Voluntary Export Limits (6.5)
product quantiit agreement
*Agreed limits *to the quantity of certain products sold by one country to another.
