External Influences Flashcards
Demand
Amount of goods/services customers are willing/able to buy at any price
Supply
Amount of goods/services sellers are willing/able to sell at any given price
Monopoly
Market dominated by one seller
Organic growth
Expansion within a business
Reasons for international trade
Variety
Specialise
Avoid conflict
Grow
Free trade
Trade without tariffs or quotas made on products
Advantages free trade
Access more raw materials
Lower prices through increased competition
Disadvantages free trade
Job losses with foreign competition
More cost for businesses in other countries
Trading bloc
Group of countries within a region that has reduced/removed trade barriers
Advantages trading bloc
Access to potential markets
increase business stability selling in another country
EU
Economic and political union of most European countries
Benefits of UK Business being in the EU
Straightforward regulations to follow
No additional import costs
No additional paperwork + border checks
Advantages to a business of the UK not being a member of the EU
Domestic goods, less competition
Paperwork checks
Imports and exports
Subsidy
Payment to taxpayers
Indirect tax
Tax on spending, paid to tax authorities, not the consumer e.g.tobacco, stamp duty
Direct tax
Tax on income and profits paid directly by bearer to tax authorities e.g.VAT, NI
Monetary policy
action taken by bank or gov to influence how much is in the economy and how much it costs
Fiscal policy
used to influence the level of spending in an economy
Business cycle
Observed patterns of increased and decreased in economic growth
Main pauses of business cycle
Boom
Slump
Recession
Recovery
Sustainability
Responsibility to conserve natural resources protect global ecosystems
Market size
number of potential customers that could buy from your business
Market growth
The percentage growth in the size of the market, measured over a specific period.
Oligopoly
market is shared by a small number of producers or sellers
