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Category: External Influences

6.1 Economic Issues

Table Of Contents 6.1.1 Business Cycle Impact on businesses of changes in employment levels, inflation and gross domestic product (GDP) Main stages of the business cycle 6.1.2 How Government Control Over the Economy Affects Business Activity  Government economic objectives Impact of changes in taxes,  government spending and interest rates. How businesses might respond to these

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6.2 Environmental and Ethical Issues

Table Of Contents 6.2.1 Environmental concerns and ethical issues as both opportunities and constraints for businesses: How business activity can impact on the environment  The concept of externalities: possible external costs and external benefits of business decisions. Sustainable development and how business activity can contribute  The role of legal controls over business activity affecting the

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6.3 Business and the International Economy

Table Of Contents 6.3.1 The Importance of Globalisation The concept of globalisation and the reasons for it Opportunities and threats of globalisation for businesses Why governments might introduce import tariffs and import quotas 6.3.2 Reasons for the Importance and Growth of Multinational Companies. (MNCs): Benefits to a business of becoming a multinational and the impact

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