Influences on Business Flashcards
What are exchange rates?
The price at which one currency can be traded for another. They tell you how currencies compare.
(T/F) Companies have to pay for the products they import in the currency of the country it was made.
True.
What is the exchange rate affected by?
Economy of individual countries and the global economy.
What would be the impacts of a depreciation in the value of the pound?
British firms would EXPORT MORE and IMPORT LESS.
What would be the impacts of an appreciation in the value of the pound?
British firms would IMPORT MORE and EXPORT LESS.
What is the national living wage?
The minimum amount a firm can pay their workers
What does the equality act cover?
It means businesses can’t discriminate against recruits
What does the consumer rights act state?
Product should be fit for it’s purpose, Must match the description, satisfactory quality
What does e-commerce mean?
Buying and selling online
Give a benefit and drawback of being ethical.
+ May gain customers
- Potentially costly
Give a benefit and drawback of being environmentally friendly
+ Attract customers
- Can be expensive
If prices rise at a fast rate are people spending more or less on needs?
More
Define interest rates
The cost of borrowing money
What do low interest rates lead to?
Increased spending, its cheaper to borrow money
What is globalisation?
The process by which businesses and countries become more connected
