External Factors (Edexcel IGCSE Business): Flashcards
Exam code: 4BS1
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What are the four main external factors that affect business (PEST)?
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Cards in this collection (15)
What are the four main external factors that affect business (PEST)?
Political, environmental, social, and technological factors.
True or False?
External factors are within a business's control.
False.
External factors are outside the business's control (e.g. Brexit), but the business's response is within its control.
Define external factors.
External factors are influences outside a business's control that affect its decisions.
Give one political factor that affects business.
Government stability and trade relationships, tax regulations, trade restrictions, and investment in public services.
How can carbon taxes act as a political factor affecting business?
They encourage manufacturing and energy businesses to reduce emissions.
Give one way environmental factors affect businesses.
Changing infrastructure (electric vehicles), waste disposal rules, a switch to green energy, and climate change disruption.
How can governments control a business's impact on the environment?
Through legislation (banning practices), fines, and limits such as pollution permits.
Some governments have prioritised a switch from fossil fuels to green energy, such as solar and power.
Some governments have prioritised a switch from fossil fuels to green energy, such as solar and wind power.
Give one social factor that affects business.
Education, migration/urbanisation, awareness of contemporary issues, demographic structure, and social mobility.
How can an ageing population create opportunities for businesses?
Ageing populations create new markets — e.g. Arts Abroad offers trips for single, mature travellers.
The movement of populations towards cities is known as .
The movement of populations towards cities is known as urbanisation.
True or False?
A better-educated workforce can help an economy develop innovative products.
True.
Higher education raises skills, opens well-paid jobs, and helps develop innovative products.
Give one way IT technology improves business functions.
Databases store data, email/messaging speed up communication, finance programs process transactions, and online technologies enable e-commerce.
How have robots and automation affected manufacturing businesses?
They have increased productivity, reduced costs, improved worker safety, and helped solve worker shortages.
True or False?
Keeping up with new technology can increase a business's capital expenditure costs.
True.
Keeping up with new technology can increase capital expenditure and may require external finance.
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