External influences on business activity

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Sample objectives

What this unit covers

• Economic issues: Understand the business cycle, including its key phases such as growth, boom, recession, and slump, and analyze how fluctuations in employment rates, inflation, and Gross Domestic Product (GDP) affect businesses.
• Economic issues: Examine how government regulation of the economy influences business operations and the potential responses from businesses, including understanding government economic goals like increasing GDP, and the effects of tax changes, government expenditure, and interest rate fluctuations.
• Environmental and ethical issues: Understand how environmental and ethical issues can present both opportunities and challenges for businesses. This includes examining the effects of business activities on the environment, such as global warming, and the idea of externalities, which refers to the potential external costs and benefits associated with business decisions. Explore the concept of sustainable development and how businesses can contribute to it, as well as the reasons businesses may react to environmental pressures and opportunities, including the influence of pressure groups. Additionally, consider the impact of legal regulations on business activities related to the environment, such as pollution controls, and the ethical dilemmas businesses may encounter, such as the tension between profit motives and ethical considerations, including issues like child labor and fair pricing for suppliers.
• Business and the international economy: Understand the significance of globalisation, including its definition and underlying reasons, as well as the opportunities and challenges it presents for businesses. Discuss why governments may implement import tariffs and quotas.
• Business and the international economy: Explore the reasons behind the significance and expansion of multinational companies (MNCs), including the advantages for businesses and their stakeholders, as well as the potential benefits and drawbacks for the host country or economy, such as job creation and local business impacts.