External Influences on the Business Environment.

What are economic cycles?

Economic cycles are periods of growth (boom) and recession (bust) that occur due to fluctuations in the level of economic activity.

What is the role of government policies in the economy?

Government policies are put in place to keep the economy growing steadily while managing inflation and wages.

What occurs during the expansion phase of an economic cycle?

During expansion, inflation is the highest, businesses operate at an all-time high, and unemployment falls.

What are the characteristics of contraction and trough in economic cycles?

In contraction and troughs, salaries are low, and unemployment rises.

What affects the economy aside from government policies?

The economy is affected by overseas trends, such as changes in trade, investment, currency levels, and the growth of other economies.

What is deregulation?

Deregulation is the removal of government regulation from industry aimed at increasing efficiency and improving competition.

How does global access to finance affect businesses?

Global businesses can access finance from worldwide sources, leading to lower interest rates.

What geographical factors affect business activities in Australia?

Major factors include Australia's geographic location in the Asia-Pacific region and changing demographics.

What is globalization?

Globalization is the process that allows people, goods, money, and ideas to move around the world faster and more cheaply.

How do social influences impact businesses?

Social influences, such as societal attitudes and changes in fashion and culture, can affect business sales and profits.

What are regulations in a business context?

Regulations are rules, laws, or orders that businesses must follow, such as the Public Health Act 2010 (NSW).

What types of influences do state and federal government policies have?

State and federal government policies can affect taxation, paid parental leave, gender workplace diversity, and environmental regulations.

What are some examples of institutions that influence businesses?

Institutions include government bodies, regulatory bodies like EPA and ASIC, and trade associations.

What are the benefits and downsides of technological influences?

Technological influences can increase productivity and efficiency but may also lead to job losses.

What is a sustainable competitive advantage?

A sustainable competitive advantage is the ability of a business to develop strategies that ensure it maintains an edge over competitors.

What types of market concentration exist?

Market concentration types include monopoly, oligopoly, monopolistic competition, and perfect competition.

What are the characteristics of a monopoly?

A monopoly occurs when one business operates in a market, influencing prices without competition.

What factors influence the ability to enter a new market?

Factors influencing market entry include market concentration and the size of competitors.

How have changes in financial and labor markets impacted businesses?

Changes in markets have facilitated easier flows of capital and shifts in labor dynamics, including temporary skilled migration.

What is a major change in consumer behavior since WWII?

There has been a significant increase in online purchasing, reducing the necessity for physical stores.