Businesses need to be able to prove that their ideas have original features and acknowledge that the ideas belong to them.
If granted, patents can grant up to 20 years exclusive rights to use, make, licence, or even sell the invention.
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Benefits of Patent law
Holding a patent encourages businesses to invest money into research and development.
A patent holder can licence its idea to others for the generation of a fee
.
Successful patents can protect you against rival businesses copying your ideas and allow yo
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Problems of Patent law
Patents are only valid for the country in which they have been registered.
The patent process can be very expensive if you need to apply for a global patent.
There is no enforcement agency for patents. If the patent is challenged then this might requir
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Deregulation of Markets
The way in which gov can make businesses more competitive
Involves the removal of rules and regulations that prevented competition
can have negative impacts as seen in the financial crisis of 2008
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Pressure groups
Government legislation is sometimes encouraged through the actions of pressure groups and their lobbying of MPs to modify specific examples of business behaviour.
The impact of such activity can be significant and can cause businesses to have to rethink
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Subsidies
Subsidies are a sum of money granted by the government to help an industry or business keep costs and therefore prices low and so encourage consumption.
Examples- solar panel installations, child care schemes, car scrappage scheme, help to buy scheme
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Benefits of subsidies
Increased supply to the market
Can increase the competitiveness of UK export companies.
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Drawbacks of subsidies
Does it correct market failure?
Businesses can become reliant upon receiving subsidy payments.
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Monetary Policy aim
to create a stable economic environment by maintaining low rates of inflation and avoiding recessions.
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monetary policy
Involves the use of interest rates and the manipulation of the money supply to influence levels of consumer spending and aggregate demand in an economy
example- inflation
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Fiscal policy
Fiscal policy are government measures that involve changes in spending or taxation in order to influence levels of demand and economic activity within an economy.
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Aims of fiscal policy
To stimulate economic growth during periods of economic downturn
To maintain low and stable rates of inflation
To provide economic stability avoiding ‘boom and bust’ economics
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Examples of indirect taxation
VAT
Fuel Duties
Land Fill Tax
Alcohol Duties
Tobacco Duties
Council Tax
Business Rates
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Examples of direct taxation
Income Tax
National Insurance
Corporation Tax
Capital Gains Tax
Inheritance Tax
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The Effects of Taxation
help encourage economic growth, as more disposable income
can suppress demand
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Expansionary Fiscal Policy
The government will increase spending and cut taxes in an effort to stimulate economic growth.
Lower taxes increase consumer spending because they have more disposable income.
This means additional revenue for business and increased demand encouraging f
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Contractionary Fiscal Policy
When using contractionary policy the government will decrease spending and raise taxes in an effort to suppress economic growth.
Higher taxes decrease consumer spending because they have less disposable income.
Businesses might also see their taxes rise
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Other cards in this set
Card 2
Front
Economic aims of government
Back
Low and stable inflation
Low levels of unemployment
Economic growth (GDP)
A balanced budget
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