Business Concept Definitions

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|A2 Business Studies: BUSS4 Definitions: | |Assessing changes in the business environment | | | |GDP – the total value of a country’s output over the course of a year | |[pic]Business cycle – the regular pattern of ups and downs in demand and output within an economy, or of gross domestic product growth over time. It is | |characterised by four main phases: boom, recession, slump or recovery | |[pic]Economic growth – an increase in the level of economic activity or real gross domestic product | |[pic]Interest rate – the cost of borrowing money and the return for lending money. They also measure the opportunity cost to both individuals and firms, of | |spending money rather than saving it and receiving interest | |[pic]Exchange rate – the price of one country’s currency in terms of another | |[pic] | |Inflation – an increase in the general level of prices within an economy. Inflation also means that there is a fall in the purchasing power of money | |[pic] | |Unemployment – the number of jobless people who want to work, are available to work, and are actively seeking employment | |[pic] | |International competitiveness – the ability of firms to sell their products successfully both abroad in export markets and at home in competition against | |imports |

|A2 Business Studies: BUSS4 Definitions: | |Assessing changes in the business environment | | | |Emerging market – an international area that has the potential to grown and develop in terms of productive capacity, market opportunities and competitive | |advantage | |[pic]Government intervention – policy based on the belief that government should exert a strong influence on the economy, rather than allowing market forces | |to dictate conditions | | |...
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