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business,economy,gov
leaving certificate business, business, the economy and the government
| Question | Answer |
|---|---|
| Which Economic Variables impact Business? | 1. Inflation, 2.Interest Rates, 3.Unemployment, 4.Exchange Rates, 5.Taxation |
| Define Inflation! | Inflation is the rise in price of goods and services over sustain period of time, normally one year, is measured by CPI, whereby the price of an average family's shopping is checked every month. |
| How does Inflation Impact Business? | 1. Employees ask for higher wages. Increases cost/ reduces profit. If pay rise is refused employees may go on strike, leading to industrial relations. 2. products more expensive -> consumer buy less -> lower demand for g&s 3. cost of everything the busi |
| Define Interest Rate! | It is the cost of borrowing money expressed as a percentage of the money borrowed. / the return on money saved over a period of time |
| How do interest Rates impact on business? | 1. can't take out loans as interest rates are too high. 2. costumer monthly mortgage repayments increase, therefore reducing disposable income 3. interest on existing loans will increase, lower profits |
| Define Unemployment! | If more than 96% of people in a country who are looking for a job are employed this counts as full employment. |
| How does Unemployment impact on Business? | 1. unemployed -> low income 2.more people looking for jobs at lower wages 3. social issues -> more spending on security /insurance 4. revenue: higher taxes to cover social welfare 5. emigration increases 6. less FDI / business confidence 7. long te |
| Define Exchange rate! | value of euro compared against other currency |
| What are the impacts of exchange rates on business? | 1. euro increses: fewer exports/ sales fall 2. euro increases: more imports 3. euro decreases: more exports |
| Define Taxation! | Tax is the compulsory payment that must be made to the government in return for the benefits of doing business in ireland |
| How does Taxation Impact Business? | 1. reduced profits, income tax, corporation tax 2. increased business cost, VAT on petrol + cars 3. reduced demand in economy leading to lower sales 4. reduced sales: Higher VAT more expensive |
Created by:
ValerieKripp
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