External Influneces Flashcards
What is external influence?
Elements from outside the company that affect business performance, such as competition, economic climate, political/legal environment
What is the business cycle?
The fluctuation of employment, income, expenditure and output in an economy over time.
What is happening in a recession?
Sustained periods (two consecutive quarters) of negative economic growth.
What is happening in recovery?
Sustained periods (two consecutive quarters) of positive economic growth
What are interest rates?
The cost of borrowing money or the reward for saving it.
What is inflation?
The rate of increase in prices and fall in the purchasing value of money over a given period of time.
What is cost push inflation?
Arises from an increase in firms costs, these costs increases can come from increase in costs such as workers wages and higher fuel costs
What is demand pull inflation?
Caused by increases in demand that outstrip supply which causes prices to rise.
What is import?
A good or service sold into a country from abroad
What is an export?
A good or service sold from the country to abroad
What is appreciation of the pound?
Where the value increases against another currency it gets stronger.
What is depreciation of the pound ?
Where the value decreases against another currency- it becomes weaker
