Cambridge IGCSE and O Level Business Studies Section 6 – Mind maps Economic issues Economic objectives Economic objectives Economic growth Low unemployment Healthy balance of payments Low inflation Economic policies Economic policies Fiscal Government income (taxation) Direct taxation Income tax Corporation tax Monetary Government spending Indirect taxation VAT Interest rates Cambridge IGCSE and O Level Business Studies Environmental and ethical issues Impact of business activity on the environment Impact of business activity on the environment Positive externalities Negative externalities Social benefits Social costs Methods used by pressure groups Methods used by pressure groups Demonstrations Boycotts Petitions Lobbying Increasing awareness of issues through websites and media Cambridge IGCSE and O Level Business Studies Ethical issues faced by businesses Finance Failing to tell customers about extra cost Insider trading False advertising Marketing Providing unsafe products Not disclosing risks associated with products or services Ethical issues faced by businesses Unequal pay Child labour Human resources Sweatshops Discrimination against employees Dumping Operations Illegal waste disposal Exceeding pollution limits Cambridge IGCSE and O Level Business Studies Business and the international economy Characteristics of globalisation Characteristics of globalisation Process by which countries are connected with each other because of the trade of goods and services Growth in international trade Dependency on global economy Greater movement of products, services, money and people Companies operating in more than one country Benefits to a business of becoming a multinational company Easier access to raw materials Lower cost of labour Economies of scale Benefits of becoming an MNC Access to bigger markets Lower production costs Spread of risk Premium pricing Brands recognised worldwide Cambridge IGCSE and O Level Business Studies Impact on businesses of changes in the exchange rate Appreciation of exchange rate Depreciation of exchange rate Imports become cheaper Imports become more expensive Exports become more expensive overseas Exports become cheaper overseas Effect of multinationals on the host country Effect of MNCs on the host country Positive Negative Improves infrastructure Environmental damage Generates income in the form of tax Exploitation of labour Increases employment Increased competition for local companies Improves the country’s reputation Social impact Increases choice of goods and services Exploitation of natural resources
