Influences On Business Flashcards
What is E-commerce?
A method of buying and selling goods and services online
Give me forms of digital communication
Email
Social media
Messaging
What is globalisation
Companies expanding their operations internationally
Benefits and drawbacks to globalisation
Benefits: increased market opportunities, cost efficiency is high
Drawbacks: western dominance, exploitation of lower labour markets
What are exchange rates?
The value one currency expressed in terms of another currency
What are interest rates?
The price you pay to borrow money
Impact of high/low interest rates
High interest rates: cost of borrowing money increases
Low interest rates: cost of borrowing money decreases
Pros and cons to E-commerce
Pros: wider market reach, round the clock availability
Cons: competition, limited connection with customers
What are the risks of starting a business and how to overcome them?
Financial risks - optimising expenses
Competition risk - focus on your customers
Legal risks - ensure that you understand the contracts that you’ve signed
Why is competitive market bad?
Unbalanced competition
Why is competitive market good?
Provides customers with affordable products
How can a business be environmentally friendly?
Limiting waste
Being clean
How can a business be ethical?
Loyalty
Fairness
What are employment laws?
Rules that protect workers in their jobs
What are consumer laws?
Rules that make sure customers are treated fairly when buying stuff
