Section 1 - 1.5 External Enviroment Flashcards
Business cycle
Refers to the fluctuation in the level of business activity over time. Countries tend to move through the cycle of booms, recessions, slums, recovery and growth
Deregulation
is the removal of government rules and regulations which constrain an industry to enhance efficiency and encourage more competition within the industry
Economic growth
Measures changes in the Gross Domestic Product of a country over time. It occurs if there is an increase in GDP for two consecutive quarters
Ethics
Are the moral values and judgements that society believes businesses ought to consider in their decision-making
Exchange rate
is the value of a countries currency in terms of t other currencies
Inflation
Occurs when the general price level in an economy continuously rises. It is measures by changes in the cost of living for the average household in a country
Interest rate
Is a measure of the price of money in terms of the amount charges for borrowed funds or how much is offered on money that is saved
Protectionist measures
Are any measures taken by a government to safeguard its industries form overseas competitors. That are a threat to businesses trying to operate in foreign markets
Steeple analysis
is an analytical framework used to examine the opportunities and threatens of the external environment
( Social, Technological, Economic, Environmental, Political, Legal and Ethical)
Unemployment
Refers to the number of people in the workforce who are willing and able to work but cannot find employment