External influences on business activity

What the syllabus asks of you

• Political and legal: the advantages and disadvantages of privatisation in a given situation
• Political and legal: the advantages and disadvantages of nationalisation in a given situation
• Political and legal: how a government might use the law to seek to control: employment practices, conditions of work (including health and safety), wage levels, marketing behaviour, competition, location decisions, particular goods and services
• Political and legal: the impact of changes in political and legal factors on business and business decisions
• Economic: how government might intervene to help businesses and encourage enterprise
• Economic: how government might intervene to constrain business activity
• Economic: how government might deal with market failure
• Economic: the key macroeconomic objectives of governments: low unemployment, low inflation, economic growth
• Economic: how macroeconomic objectives and performance of an economy can have an impact on business activity
• Economic: government policies used to achieve macroeconomic objectives: monetary, fiscal, supply-side and exchange rate policies
• Economic: the impact of changes in these government policies on business and business decisions
• Social and demographic: the impact of and issues associated with corporate social responsibility (CSR), e.g. accounting practices, paying incentives for the award of contracts, social auditing
• Social and demographic: why businesses need to consider the needs of the community including pressure groups
• Social and demographic: demographic changes at a local, national and global level
• Social and demographic: the impact of social and demographic change on business and business decisions
• Technological: the impact of technological change on business and business decisions
• Competitors and suppliers: the impact of competitors and suppliers on business and business decisions
• International: the importance of international trading links and their impact on business and business decisions
• International: how international trade agreements might have an impact on businesses
• International: the role of technology in international trade
• International: the advantages and disadvantages that a multinational might bring to a country
• International: relationships between multinationals and governments
• Environmental: how physical environmental issues might influence business behaviour
• Environmental: how a business and its stakeholders may use an environmental audit
• Environmental: the impact of the growing importance of sustainability on business and business decisions