Section 1 - 1.5 External Enviroment Flashcards

1
Q

Business cycle

A

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

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2
Q

Deregulation

A

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

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3
Q

Economic growth

A

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

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4
Q

Ethics

A

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

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5
Q

Exchange rate

A

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

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6
Q

Inflation

A

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

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7
Q

Interest rate

A

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

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8
Q

Protectionist measures

A

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

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9
Q

Steeple analysis

A

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

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10
Q

Unemployment

A

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

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