1.3+Changing+Business+environment+and+1.4+Economic+Environment

=Introduction: Units 1.3 and 1.4 deal with external influences on businesses- such as political, economic, social and technological factors (PEST).= =Because there is an overlap in these two units they are studied together. It is also easier to deal with all the "Economic" topics together, and so unit 5 is also covered now.=


 * 1.4.1.Show an awareness of the main differences between planned and market economies•Understand the reasons behind the existence of these two types of systems> •Appreciate the different outcomes of the systems in terms of choice, prices and availability of goods/services
 * 1.31 Identify need for intervention (by governments in market economies- so called "market failure)
 * Show understanding of the impact of intervention in terms of business decisions e.g. what is produced and how
 * Give examples of intervention both to support and control the impact of business activity on people, the economy and the environment

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 * Know how interest rates affect business

> > Your first task is to understand the various forms of taxation. Download the document below and match the definitions to the key terms: > >
 * Demonstrate an awareness of the impact that tax changes might have on business decisions

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 * Explain the impact that technological change has on a business
 * • Understand the impact on costs, labour requirements, methods of production and marketing of technological change
 * Internet and e-commerce • Define and explain the concept of e-commerce
 * • Evaluate the benefits and threats to both consumers and business of e-commerce


 * 1.3.3 Business reaction to market changes Show understanding of market changes and how these might be responded to by business • • • Show understanding of why consumer spending patterns may change Show understanding of why markets have become more competitive Evaluate impact of increased competition on consumers and business