Topic 2 Influences On Businesses

Question 1

What is an economy?

Answer 1

A system made up of millions of consumers, many thousands of businesses and governments. Together they take decisions on what to buy and produce

Question 2

The economic climate

Answer 2

Describes the state of key factors within a country e.g the level of goods and services produced, number of jobs available

Question 3

What are interest rates?

Answer 3

The cost of borrowing money or the reward for saving money, expressed as a percentage

Question 4

Globalisation

Answer 4

The trend for markets to become worldwide in scope

Question 5

Multinational company (MNC)

Answer 5

Produces goods and services in more than one country. They are also called transnational corporations (TNCs)

Question 6

International trade

Answer 6

The selling of goods and services across national borders

Question 7

Exports

Answer 7

Goods and services produced by a business in one country

Question 8

Tariff

Answer 8

A tax on foreign goods imported into a country

Question 9

Exchange rates

Answer 9

The value of one currency compared to another. E.g british currency (£) value compared to american currency ($) value might be valued more