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Business Ocr As Level Required Notes. > External influences > Flashcards

External influences Flashcards

1
Q

What are the different types of market structures in order?

A

Monopoly,Duopoly, Oligopoly, Monopolistic Competition, Competitive market, Perfect market

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2
Q

Whats a monopoly?

A

A single firm supply a whole market, must have at least 25% market share

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3
Q

What is a duopoly?

A

When two firms control the market, e.g. cola market (Pepsi and Coke)

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4
Q

What is a oligopoly?

A

Several large firms dominate the market e.g. supermarkets

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5
Q

What is monopolistic market?

A

Many small firms maintain control of the market, restaurant chain

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6
Q

What is a competitive market?

A

Many firms control the market with intense price competition, low product differentiation.

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7
Q

What is a perfect competition market?

A

All products are identical, with many buyers and sellers having to accept the price.

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8
Q

What is meant by barriers to entry?

A

The factors that could prevent a business from entering and competing in a market.

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9
Q

What is meant by barriers to exit?

A

The factors that could prevent a business from leaving a market even if it wants to such as having high amount of specialized assets that are hard to sell making exit not viable.

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10
Q

What is meant by a market?

A

Any situation where buyers and sellers are in contact in order to establish a price.

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11
Q

How is market price determined?

A

Demand, Supply

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12
Q

What is equilibrium price?

A

The price at which the consumers demand is equal to what the business is prepared to supply.

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13
Q

What are the factors that determine demand?

A

Price, Income, Wealth,Advertising, Promotional offers, Taste and fashion, Demographic changes, Government action, amount of substitutes.

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14
Q

What are complements?

A

Products that are joint in demand that is when a product is bought is the other, e.g. DVD players and DVDs.

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15
Q

What are the factors that determine supply?

A

Price, Costs, Tax, Subsidies.

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16
Q

What are subsidies?

A

A payment from the government to encourage the business to increase supply.

17
Q

What is the competition law?

A

It’s illegal for businesses to restrict competition, e.g. charging low prices to for competition out, Businesses conspiring together to keep up prices.

18
Q

Whats an employment tribunal?

A

A special type of court that only deals with employment related issues such as victimization or unfair dismissal.

19
Q

What are the effects of technology on a business?

A

Employees often associate with technological change with unemployment, due to computers and technology not needing the same amount of employees.
New technology makes current workers need to acquire new skills to be able to operate the equipment.
Changes with new technology may force employees to move to different departments as, technology is begging to dominate production.

20
Q

What are the benefits of technological change?

A

May create more jobs through the introduction of new technology, e.g. In banks cashiers may have fallen but online banking has increased greatly resulting in new employment required.
New technology creates new demand
Results in learning new skills and introducing new technology can motivate staff as they feel as they are being invested in.

21
Q

What are the environmental issues with technological change?

A

Increased air pollution due to more technology being implemented into the work place.

22
Q

What is free trade?

A

Trade without tariffs or quotas being imposed when products are traded.

23
Q

What is a single market?

A

A market in which there is a single set of laws and regulations relating to the movement of products, people and money; all businesses in the single market have to abide by these.

24
Q

What are trade barriers?

A

Are ways to prevent imports into a country, some examples of trade barriers are putting quotas on the amount of imports allowed in a country. Another way to solve the problem would be to put a tax on goods entering from abroad. Making imports expensive.

25
Q

What are the disadvantages of implementing trade barriers?

A

By implementing trade barriers other countries may retaliate, this can result in a quota and tariff trade war that is damaging to businesses in all the countries concerned.

26
Q

Why is competition good in an economy?

A

Competition is good because it brings down prices, drives up quality and improves customer service. Any business that does not strive to improve in these areas will find its customers taken by those who do.

27
Q

What are the implications of trading in the EU for a UK Business?

A
  • Someone must in the business must perform SWOT analysis in the EU market, this takes up a lot of time and other resources.
  • Communication may be hard with customers who speak different languages.
  • Businesses have to comply with the common requirements on specifications, standards and labelling if they want to trade. This can be costly.
  • Customers in Europe may insist on paying UK businesses in euros, since that is the currency they use with all other European firms. They will then have to exchange this what costs time and the cost of exchanging Euros into pounds.
28
Q

How has the expansion of the EU have benefitted businesses

A
  • Larger market for those that export
  • Opportunity to expand manufacturing into other countries
  • Availability of more labour from migrants moving into the existing member countries
29
Q

What are the advantages to a UK business if the UK joined the Euro?

A
  • Prices would be easier to understand as all currencies would be the same.
  • No more commission on exchanging euros.
30
Q

What are the disadvantages to a UK Economy if the UK joined the Euro?

A
  • Loss of control over the monetary policy, decisions on interest rates are made by the European Central Back. This could cause problems if the EU are booming whereas the UK is in a recession, so EU increase the interest rate to slow the boom but this just creates even less trade in the UK.
  • Exchange rate issues, if all the UK had to exchange Pounds for Euro what would the exchange rate be if it’s to high then UK consumers will have high buying power on exports and exports will rise, however this will mean that EU countries importing from the UK costs will rise significantly as the Euro to pound is worth less. If it’s to low then it will also cause problems such as that. I am actually in a fortunate situation and I still don’t take advantage of this situation to

Business Ocr As Level Required Notes. (6 decks)

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