business w/ no adv. & disadv. (UNIT 6)

growth

• GDP rises

• customer and businesses have optimistic time

• increased disposable income

• unemployment reduces

boom

• GDP rises rapidly

recession

• GDP starts to decline

• unemployment increases

• people stop spending a lot of money

slump

• GDP falls quickly

• unemployment is at an all time high

• prices of things have gone significantly up

• less disposable incomes

govt. objectives

• to keep unemployment low

• to keep inflation low

  • fall in living standards

  • fall in purchasing power

  • fall in sales and profit

• healthy balance of payments

• economic growth

fiscal policy

collecting taxes and using it to increase demand of goods and services

monetary policy

A government plan that uses changes in exchange rates, interest rates and the money supply to stimulate demand for goods and services in the economy.

corporation tax

government collects taxes from companies when they make a profit

businesses and the envm.

• pollution

• congestion

• plastic waste

• nuclear waste

• use of natural resources

• global warming

• desertification

• deforestation

how can businesses be sustainable

• pay fair wages to employees

• renewable energy

• locate near transport routes

• electric vehicles for transport

• avoid deforestation

• recycle waste

envm. issues and pressures

• pressure groups

• legal controls

• social media

how can govt. to help control pollution

• additional taxes

• impose fines

• incentives for following the laws

how to respond to envm. issues

• start using renewable energy

• making a pledge/statement that they will not use unsustainable things

• changing packaging

why businesses might respond to legal issues

• public image

• opp. to be sustainable

• response to legal actions

• attract customers

ethical issues

• child labour

• unfair bonuses to the owners

• discrimination

• social media

• abuse of technology

how to respond to ethical issues

• make public apology

• do nothing

benefits and limitiations of globalisation

+ increased choice

+ economic development/growth

+ economies of scale

+ specialisation

- diseconomies of scale

- brain drain

- cultural differences

benefits and limitations of multinationals

+ increased profit

+ increased choice

+ jobs

+ govt. recieves a lot of tax revenue

- local businesses don’t get a lot of revenue

- unsustainability

- power