Influences on Businesses Flashcards
What are interest rates?
The cost of borrowing and the reward for saving.
What does higher interest rates mean?
Borrowing is expensive, people and businesses borrow less.
What does lower interest rates mean?
Borrowing is cheaper, people and businesses borrow more.
Why would interest rates increase?
People are spending money too quickly so demand rises.
What is inflation?
When prices rise too fast that we can’t afford to live comfortably.
What happens if fewer people have jobs?
The average amount of money being earned is lower.
What is deflation?
If people stop demanding so much meaning the prices fall.
What is E-commerce?
Ordering online.
What is M-commerce?
Business transactions completed on a mobile phone.
What is Digital Communication?
Transmitting information between computing devices e.g Skype.
What are ethics?
Rules that require businesses to operate in a way that is fair and honest.
3 examples of ethical issues?
Unnecessary travel such as air travel which is bad for the environment.
Increased amount of waste going to landfills.
Noise pollution from loud vehicles and factories.
What is sustainability?
Avoid unnecessary use of materials and energy to avoid causing damage to the planet.
Why are businesses sustainable?
To improve their reputation
To ensure they can continue to operate long into the future.
What happens if a currency is strong?
It buys more of another currency.
