External influences on business activity Flashcards

1
Q

Balance of payments

A

The difference between the values of export and import goods and services of a country over a year

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2
Q

Inflation

A

The price increase of goods and services over time

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3
Q

Level of unemployment

A

The proportion/percentage of population that are capable of working but unable to find a job

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4
Q

Gross domestic product (GDP)

A

The value of all goods and services produced by a country in a year

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5
Q

Growth

A

This stage is when the economy recovers or grows

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6
Q

Boom

A

This stage is the peak of a business cycle

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7
Q

Recession

A

This is when the economy shrinks in size

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8
Q

Slump

A

This is when the recession stage of the economy is at its worst

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9
Q

Interest rate

A

The cost to a person or business of borrowing money from a lender such as a bank

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10
Q

Tax

A

A charge/fee paid to the government on income, goods and services

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11
Q

Direct tax

A

The tax charged on personal income or tax on the profit made by a business

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12
Q

Indirect tax

A

The tax charged on the price of goods and services, which is added to the price of goods and services before they are bought

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13
Q

Disposable income

A

The amount of income left for individuals after taxes have been paid

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14
Q

Externality

A

The effect of business activities on unrelated parties

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15
Q

Social cost

A

The negative impact of a business decision on society

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16
Q

Social benefit

A

The positive impact of a business decision on society

17
Q

Cross-benefit analysis

A

Analysis of the costs and benefits of a project, the focus being on the social costs and benefits

18
Q

Sustainable development

A

A business activity is said to be sustainable if it has a positive overall impact on the environment and its stakeholders, ensuring its survival in the future

19
Q

Multinational company

A

An organisation that has operations in more than one country

20
Q

Globalisation

A

The process by which countries are connected with each other because of the trade of goods and services

21
Q

Trade bloc

A

A group of countries that trade with each other are usually part of a free trade agreement

22
Q

Home country

A

The domestic country where a multinational starts/first establishes its operations

23
Q

Host country

A

The foreign country where a multinational sets up its operations

24
Q

Tariff

A

A tax applied to the value of imported and exported goods

25
Quota
A physical limit on the quantity of goods that can be imported and exported
26
Exchange rate
The rate at which one country's currency can be exchanged for that of another
27
Depreciation
A currency is said to depreciate if the value of the currency goes down with respect to another
28
Appreciation
A currency is said to appreciate if the value of the currency increases with respect to another currency