Pearson Edexcel International A Level Business XBS11 and YBS11 (235) 3 The competitive environment

Pearson Edexcel International A level Business Unit 2.3.5 External Influences (3 complete lessons)

Pearson Edexcel International A level Business Unit 2.3.5 External Influences (3 complete lessons) 1 Economic influences a) The effect on businesses of, and how they can best respond to, changes in: • the rate of inflation • exchange rates (appreciation, depreciation) • interest rates • taxation and government spending • the business cycle. 2 Legislation a) The effects on businesses of: • consumer protection • employee protection • environmental protection • competition policy • health and safety • intellectual property rights (copyright, patents and trademarks). 3 The competitive environment a) The effects on businesses of competition in terms of competitor: • numbers • size • behaviour. b) Ways for a small business to compete in a competitive market.