Unit 6 External Influences on Business Activity
government investment on infrastructure or spending on welfare payments
Economy is decreasing in size
prices and salaries rise so the value of money – what you can - buy decreases.
tracks the size of the economy as it increases and decreases and goes through four phases – growth, boom decline and slump
Gross Domestic Product (GDP)
measures the size of the economy. Calculated by adding up the value of all the goods and services produced in one country in on year.
All product and services which are produced and consumed within a country
Increased interconnectedness worldwide movement of goods, services, capital and people
a tax on imports
a limit on imports
Multinational corporations (MNC)
businesses that sell goods/services or have production in more than one country
Repatriating profits –
taking profits earned in a foreign market and taking it to the home country.
the price of one currency for another – 1 euro = $2
value of a currency rises
Currency depreciation –
value of a currency falls