ILO:
a) The effect on businesses of changes in:
o inflation (the rate of inflation, the Consumer Prices Index)
o exchange rates (appreciation, depreciation)
o interest rates
o taxation and government spending
o the business cycle
b) The effect of economic uncertainty on the business environment
a) The effect on businesses of changes in:
o inflation (the rate of inflation, the Consumer Prices Index)
o exchange rates (appreciation, depreciation)
o interest rates
o taxation and government spending
o the business cycle
b) The effect of economic uncertainty on the business environment
Inflation
Watch the theory video and make notes.
Inflation and Business
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Assess the impact of inflation on Chinese businesses? (10/12 marks)
China's inflation soars in November amid rise in pork prices
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Assess how a business can respond to the level of inflation observed in Venezuela? (10/12 marks)
Venezuelan businesses battle hyperinflation | Money Talks
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Exchange Rates
Watch the theory video and make notes.
Business Maths - Exchange Rates
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Assess how a depreciation in the pound will impact UK firms? (10/12 marks)
How a weak sterling will hit UK households | FT World
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Assess how effective reducing product sizes is as a strategy in response to imported inflation?
Shrinkflation: Are Our Favourite Products Shrinking? | This Morning
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Interest Rates |
Watch the theory video and make notes.
Impact of Interest Rate Changes on Consumers & Producers
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Assess how beneficial the cut to interest rates will be for businesses? (10/12 marks)
Bank of England cuts bank rate to 0.1%
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Taxation & Government Spending
Watch the theory video. How does Government spending help businesses?
How the government spends your money | BBC Newsbeat
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Explain how the different types of tax impacts businesses?
Tax Facts: About HMRC
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Assess how significant an increase in tax would be on the gambling industry? (10/12 marks)
Gambling Tax Rise In Great Britain Who Will Be The Winners And Losers?
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Case study
Assess the impact of the new apprenticeship levy for large UK firms like Tesco's?(10/12 marks)
Employers Guide to the apprenticeship levy
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Apprenticeship Levy is 'just another tax' on UK businesses
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Josh – Apprentice at Tesco
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Business Cycle
What do you think is meant by the business cycle?
How is it related to YED? |
Watch the theory video and make notes.
A level Business Revision - The Business Cycle
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Explain how the financial crisis impacted businesses?
How can a business protect itself from a downturn? The financial crisis: a decade of debt | PunkFT
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Assess the opportunity for UK business from China's GDP growth? (10/12 marks)
Related article: Ikea gets its China formula right helping boost sales Luxury Shopping in China With No Limit - Ep. 6 | The Bling Dynasty | GQ
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Economic Uncertainty
Explain the problems caused by economic uncertainty?
Coronavirus: Stock market suffers worst week since 2008 crash – BBC Newsnight
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What can a business do to reduce the threat of uncertainty?
Business, Brexit and the case of no deal - BBC Newsnight
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