Topic Three, Part 5 - Political Factors Flashcards
What local rules and regulations determine a businesses’ operation?
Council tax and business rates, local regeneration schemes
What are the difference in policy’s for conservatives?
less tax and regulations, smaller public sector
What are the difference in policy’s for labours?
more worker protection, more money for public services, more tax
What politics outside the UK have an affect?
international disputes
elections
exchange rates
What rules come with being part of the EU?
- Regulations
- Directives
- Law recommendations
Changes due to the single market?
- Freedom of movement for all EU citizens
- Free movement of capital
- Removal of internal tariffs and a common external tariff
What have changes to the single market lead to?
- Increased competition
- Increased specialisation
- Greater economies of scale
When was the Euro introduced?
January 1999 and used by 19 EU members in January 2002
What issues were faced by the Euro at first?
Expanding too quickly and encompassing economies too diverse for seamless integration
What is austerity?
Since the 2008 financial crisis the government has cut-back on spending to reduce national debt.
What is privatisation?
Passing ownership of a business from public to private sector, by selling shares
What are the disadvantages of privatisation?
- Rely on public profit, won’t get government money
- Business sold too cheap - government makes less
- The decisions are made for profit, not public good
What are the advantages of privatisation?
- Selling a business generates funds for the government
- Due to public reliance, they need to be more efficient
Why are Regulators important?
- Private companies could raise prices , as the public has little choice but to pay
What is Deregulation?
Removal of lots of regulations for employment and operating practices
