Impact on changes in the Legal + Political Change on Decision-Making Flashcards
What do we need to know in the impact on changes in legal and political change on decision making?
Need to understand the different types of legislation on businesses and their markets
What are the 4 key areas of focus?
Competition Law
Labour Law
Environmental Legislation
Government Policy
What does the Government have an impact on decision making?
Fair competition
Fair treatment of employees
Reducing negative environmental impact
Consumer protection
What must businesses adhere to ensure a fair and sustainable trading environment?
The rules
What are 3 competition laws?
Anti-competitive agreements
Abuse of dominant market position
Merger control
What does anti-competitive agreements stop?
Any collusion or arrangements that restrict competition e.g price fixing
What does abuse of dominant market position mean?
Businesses with 40%+ market share would be considered dominant.
Why is abuse of dominant market position bad?
Abusing power
What does merger control mean?
Mergers to be reviewed to make sure they don’t have a significant impact on reducing competition
Who governs competition? 2 people
Competition & Markets Authority (CMA)
Financial Conduct Authority (FCA)
What are 2 benefits of competition legislation to suppliers?
Competitive pricing
More demand
What are 2 benefits of competition legislation to consumers?
Range of price points
Innovation
What does it mean if the EU is a single market?
Means that there are very few trade barriers between EU member states
What does fair competition mean?
Companies are motivated to provide good quality products for reasonable prices
What is a monopoly in business?
How does this link to competition?
When one business has complete control over the market and this links to dominance of the market
