Section 1 - 1.5 External Enviroment

Question 1

Business cycle

Answer 1

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

Question 2

Deregulation

Answer 2

is the removal of government rules and regulations which constrain an industry to enhance efficiency and encourage more competition within the industry

Question 3

Economic growth

Answer 3

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

Question 4

Ethics

Answer 4

Are the moral values and judgements that society believes businesses ought to consider in their decision-making

Question 5

Exchange rate

Answer 5

is the value of a countries currency in terms of t other currencies

Question 6

Inflation

Answer 6

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

Question 7

Interest rate

Answer 7

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

Question 8

Protectionist measures

Answer 8

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

Question 9

Steeple analysis

Answer 9

is an analytical framework used to examine the opportunities and threatens of the external environment
( Social, Technological, Economic, Environmental, Political, Legal and Ethical)

Question 10

Unemployment

Answer 10

Refers to the number of people in the workforce who are willing and able to work but cannot find employment