UNIT 6 - ASSIGNMENT 12 - THE BUSINESS ENVIRONMENT

1. Explain the meaning of the following terms giving an example of each where possible.

• Economic problem
• Opportunity cost
• Producer good
• Single use consumer good
• Durable consumer good
• Services
• Primary, secondary and tertiary industry
• Factors of production
• Exports
• Imports
• Balance of trade
• Pressure groups

2. Finish the following sentences:

Businesses do not like high taxes because……………………………………..

Businesses like low interest rates because…………………………………….

A low exchange rate is good for exports because…………………………….

Inflation is worse for people on fixed incomes because………………………

3. Write a short essay explaining what the European Union is and its advantages and disadvantages for UK business.

Carry out the same exercise for the Single Currency.

4. In each of the areas explain why government legislation is thought to be needed and state one law that has been passed:

• Health and Safety
• Equal Opportunities
• Equal Pay
• Employment legislation
• Consumer rights

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