AQA GCSE 3.2 Influences on Business

Multi-National Company

A company that has business operations in at least one other country other then its home country.

Protectionism

The restricting products from other countries through methods such as tariffs on imported goods and import quotas.

Recession

A period of temporary economic decline, during which trade and industrial activity are reduced, generally identified by a fall in GDP.

Uncertainty

Occurs when there is a lack of information about a situation.

Circular economy

A model of production and consumption which involves reusing, repairing, refurbishing, and recycling existing materials and products as long as possible.

Variable Interest Rates

Interest rates that change over the lifetime of the loan, depending on what is happening to the other interest rates in the economy.

Tariff

Tax on imported goods

Mortgage

An agreement between you and your lender that gives the lender the right to take your property if you fail to pay back the money you have borrowed plus interest.

Exchange Rate

Price of one currency expressed in terms of another currency.

Customer

Someone who buys a product from a business

Globalisation

a process in which economies have become increasingly more integrated and interdependent.

Quotas

Restriction of the volume of imports.

Rising

________ interest rates are more attractive as more money comes into the UK.

proportion of sales

MARKET SHARE (%)- The ________ from one one company compared to total market.

Consumer

Someone who uses goods and services provided by a business

Economic Growth

where real GDP is increasing.

GDP

(Gross Domestic Product) measure the size of an economy (the value of everything being produced /sold /earned within it)

Risk

Possibility of something going wrong.

Interest Rates

the price or cost of borrowing money and the reward for saving.

Cloud Computing

Where data is stored anywhere in the world on any storage device

GDPR

General Data Protection Regulation

Marketing Mix

Product ; Place ; Price ; Promotion

Fixed Interest Rates

Stay the same over the period of the loan

Consumer Price Index (CPI)

Monthly change in prices made by consumers

Retail Price Index (RPI)

Measure of inflation, which in turn is the rate at which prices for services and goods are rising

Economic Climate

The state of key factors within a country, such as the level of goods and services produced, and the number of jobs available

Needs

Something that needs to be fulfilled for us to survive (i.e food, water)

Wants

What we would like to satisfy our needs (i.e phone, clothes)

Market

Where buyers and sellers exchange items or money

Exchange

An exchange occurs when someone gives up something for something else

Market SIze

Measured as sales volume (units sold) or sales value (revenue, £)

Market Gorwth

The change in market size compared to previous years

Market Share

The proportion of sales from one one company compared to total market