Unit 38 Business and Economic Environment - 4792 Words

Unit 38: Unit code: QCF Level 3: Credit value: Business and the Economic Environment T/502/5500 BTEC National 10 Guided learning hours: 60 Aim and purpose The aim of this unit is to introduce learners to the interaction between the general economic environment and business activity and how the interactions generate national wellbeing. Learners will study how government activities regulate and influence business activities and how business activities influence government action and policy. Unit introduction Businesses operate in an environment shaped by the government. Government seeks to control the general level of prices (inflation), employment levels, economic growth and the balance of payments. A range of techniques is†¦show more content†¦; regional policy; environmental policy 2 Know how government spending impacts on businesses Government spending: public services via central and local government agencies; private and voluntary sector business organisations; deficit funding; government spending and the multiplier mechanism; local impacts of funding; private finance initiatives 3 Understand fiscal and monetary policies and the effects on spending Fiscal policy: direct and indirect taxation; capital allowances; impact of changes on costs, aggregate demand and tax free allowances; potential annual revision; public finances; public sector borrowing; comprehensive spending review; pre-budget report; budget; re-distribution of income Monetary policy: aggregate demand and trading conditions; monetary policy; interest rate changes; inflation, employment levels; investment decisions; impacts of actual and anticipated changes 4 Know how the international economy affects UK businesses and competition European factors: role of European Union (EU); performance of European Union economies; European policies eg agriculture (CAP), business, growth, employment, education, economics and finance, employment, environment, science and technology, regional, external relations, social; the European Monetary Union (EMU) Global factors: World Trade Organisation (WTO); trading blocs; stock market fluctuations; credit availability; global warming; political stability, war; industry-specific developments (oil, gas,Show MoreRelatedUnit 38 Business And Economic Environment P5 M3 European And Global Factors723 Words   |  2 Pagesï » ¿European Global Factors In this report, I will be exploring the European and global factors that occur within the economic environment. 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