External Factors- Economic

Question 1

What are external factors?

Answer 1

Different situations that impact on the success of the business that arose from the outside

Question 2

What are economic factors?

Answer 2

Factors that affect the state of the economy (state of country or region in terms of production, consumption and supply of money)

Question 3

What is the economic cycle?

Answer 3

GDP (gross domestic product)
| boom ___
| / \ / \ /
| / \ / \ / recovery
| / \___/ \ ___/
|_______recession_____________________
Economic Cycle Change

Question 4

What are examples of economic factors (“levers”)?

Answer 4

Economic growth
Unemployment rate
Interest rates
Inflation
Exchange rates

Question 5

Terms in the economic cycle:

Answer 5

Boom- GDP and employment high, demand high
Recession- GDP and employment fall, demand low
Recovery- GDP and employment begin to rise, demand increases

Question 6

What is GDP?

Answer 6

Gross Domestic Profit. It refers to the amount of goods and services provided and consumed by the country

Question 7

What are interest rates?

Answer 7

They determine the percentage that is added to borrowings or savings

Question 8

What are exchange rates?

Answer 8

They determine the amount of one currency that can be bought using another currency.