Influences On Businesses (Unit 2)

Question 1

What are Exchange rates ?

Answer 1

The exchange rate is the amount of one currency that can be bought with another currency.

Question 2

What are Imports ?

Answer 2

Imports are goods or services brought into one country from another.

Question 3

The impacts of services .

Answer 3

.foreign imports to the UK increase competition For UK firms.
.consumers are able to buy goods from overseas.

Question 4

Strong pound.

Answer 4

If the exchange rate changes this will then lead to the currency getting stronger and will be worth more.

Question 5

Weak pound.

Answer 5

If the exchange rate changes and the currency gets weaker or depreciates (devalues) it will be worth less and therefore be more cheaper.

Question 6

SPICED meaning ?

Answer 6

Strong,Pound,Imports,Cheap,Exports,Dear

Question 7

Different aspects of legislation.

Answer 7

.consumer,employment & health and safety laws
.Effects on Business of not meeting legal obligations

Question 8

What is employment law ?

Answer 8

Employment law provides rights for employees to be protected in the workplace.These include areas such as pay,discrimination.

Question 9

Consumer legislation (Benefits)

Answer 9

.Improved reputation in the marketplace leading to an increase in sales.
.Bad publicity is avoided

Question 10

Consumer legislation (costs)

Answer 10

.Higher quality raw materials could be required.
.Administration /management time spent checking the law has been met

Question 11

Types of competition.

Answer 11

.price
.Quality
.Location
,Product range
.Customer service

Question 12

Reasons for business failure.

Answer 12

.poor management
.poor management research
.sales lower than expected.

Question 13

Defining a market.

Answer 13

.local markets
.National markets
.Global markets
.ElEctronic markets