Pearson Edexcel International A level Business Unit 2.3.5 External Influences (3 complete lessons)

Pearson Edexcel International A level Business Unit 2.3.5 External Influences (3 complete lessons)

1 Economic influences
a) The effect on businesses of, and how they can best respond to, changes in:
• the rate of inflation
• exchange rates (appreciation, depreciation)
• interest rates
• taxation and government spending
• the business cycle.
2 Legislation
a) The effects on businesses of:
• consumer protection
• employee protection
• environmental protection
• competition policy
• health and safety
• intellectual property rights (copyright, patents and trademarks).
3 The competitive environment
a) The effects on businesses of competition in terms of competitor:
• numbers
• size
• behaviour.
b) Ways for a small business to compete in a competitive market.