1.5.4 The economy and business
The impact of the economic climate on businesses:
● unemployment, changing levels of consumer income, inflation, changes in interest rates, government taxation, changes in exchange rates.
● unemployment, changing levels of consumer income, inflation, changes in interest rates, government taxation, changes in exchange rates.
GDP & Unemployment
How might these two videos be linked?
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The Credit Crunch Explained
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UK high street closures
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What is meant by GDP?
How is it related to unemployment?
Why would this data be important for businesses?
How can a business protect itself from a recession?
How is it related to unemployment?
Why would this data be important for businesses?
How can a business protect itself from a recession?
Inflation
What is meant by inflation?
What impacts could inflation have for businesses? Hint - what do you think is meant by good and bad inflation?
What impacts could inflation have for businesses? Hint - what do you think is meant by good and bad inflation?
What actions are avilable to a business to respond to inflation?
What might be some of the negative consequences of such an action?
What might be some of the negative consequences of such an action?
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Toblerone changed the shape of its chocolate bars so now everyone gets less chocolate - TomoNews
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The Gigantic Grocery Warehouses Built like Living Organisms
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Interest Rates
What is meant by interest rates? What are the two things you can do at a bank which are influenced by interest rates?
How will changes in the interest rate influence a business possible directly on indirectly?
How will changes in the interest rate influence a business possible directly on indirectly?
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What does the interest rate rise tell us about the health of the economy? - BBC Newsnight
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Government Tax
There are 3 main types of tax in the UK - do you know what they are? Research what the rates of tax are and in what direction they've changed? How will this influence businesses? |
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How does Nando's avoid paying tax in the UK? | Guardian Animations
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Exchange Rates
What is an exchange rate?
Does anyone know what has recently happened to the pound?
Key method to help with analysis = SPICED
Does anyone know what has recently happened to the pound?
Key method to help with analysis = SPICED
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Activity: Exchange rates sheet
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UK: Pound drops to 31-year low against dollar on Brexit fears
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TRAILER: Dispatches: Supermarkets: Brexit & Your Shrinking Shop
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