J: Describe demographic, governmental, social, and technological influences that provide insights on industry growth, profitability, and risk

Question 1

Demographic influences on industries include the size and age distribution of the population.

Answer 1

Factors affecting industry growth that are related to the composition and age distribution of the population are best described as: Demographic factors include age distribution and population size, as well as other changes in the composition of the population.

Among the external influences that affect industries, “demographic factors” refers to those that are related to the size and composition of the population.

Question 2

Government factors include tax rates, regulations, empowerment of self-regulatory organizations, and government purchases of goods and services.

Answer 2

Taxes, Regulation

Question 3

Social influences relate to how people interact and conduct their lives.

Answer 3

work / play habits, spending, life style

Question 4

Technology can dramatically change an industry through the introduction of new or improved products

Answer 4

Technological changes are most likely to result in which of the following effects? Evolving technology is likely to result in changes in: educational curriculum and the relative demand for various products. If technological changes result in changes in the set of skills required of workers, this is likely to lead to changes in educational curriculum (and possibly delivery). Such changes often result in the production and demand for new or different products.

Question 5

Macro Factors

Answer 5

Macroeconomic factors can be cyclical or structural (longer‐term)
trends
– Economic output as measured by GDP
– Interest rates: affects financing costs as well as financial
institution profitability
– Credit availability: affects consumer and business expenditures
– Inflation: affects costs, prices, interest rates and confidence