External Environment 5.0 / 5 based on 1 rating ? Business StudiesThe External EnvironmentA2/A-levelAQA Created by: megan_farrellyCreated on: 25-05-17 11:54 Define external environment The factors outside a business that can affect its operations by influencing its activities and choices 1 of 15 What is the monetary policy? It involves changes in interest rates, the supply of money and credit & exchange rates to influence the economy 2 of 15 What is the main objective of the monetary policy? Price stablility 3 of 15 What does PESTLE stand for? Political, economical, social, technological, legal, environmental/ethical 4 of 15 Give 1 example of what political entails Competition policy, industry regulation, govt. spending and tax policies, business policy and incentives 5 of 15 Give 1 example of what economical entails Interest rates, consumer spending and income, exchange rates, economical growth (GDP) 6 of 15 Give 1 example of what social entails Demographic change, impact of pressure groups, consumer tastes and fashions, changing lifestyles 7 of 15 Give 1 example of what technological entails Disruptive technologies, adoption of mobile technology, new production processes, big data and dynamic pricing 8 of 15 Give 1 example of what legal entails Employment law, minimum/living wage, health and safety laws, environmental legislation 9 of 15 Give 1 example of what ethical/environemt entails Sustainability,tax practices, ethical sourcing (supply chain), pollution & carbon emissions, CSR 10 of 15 What are interest rates? The cost of borrowing money or return for investing money 11 of 15 Define growth The total volume of goods being made and solf 12 of 15 Define unemployment The number of people not working 13 of 15 What is inflation? The rising of prices 14 of 15 Why does high inflation affect business? The value of money is low, prices are high 15 of 15
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