Category: Business Studies
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Consumer spending
Change in consumer spending pattern Reasons Tastes Affordability Image Need
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Drawbacks of e-commerce
Threats of E-commerce Large number of people do not use internet (only 28.7% of the people in the world use internet) Frauds Not useful for everyday items
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Benefits of e-commerce
Benefits of E-commerce Lower cost of purchase as the consumer does not have to visit the place Cheapest way of doing business Able to interact and do business with the whole world (globalisation) Consumer’s time saved
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What is e-commerce?
E-commerce E commerce is buying and selling of goods and services through internet The concept of e-commerce is about using the Internet to do business efficiently Eg. amazon.com, ebay.com
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Positive impacts of Technology
Impact of technological change on Costs The average cost will lower, thus achieving economies of scale whereas the initial cost of the technological change will be huge Labour requirements Less labour is required after technological change, or the labour is required to do training programs Methods of production Methods of production will change…
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Tax changes affect business
How different tax changes affect business The tax which affects the business is called the corporation tax This is a tax which businesses have to pay If there is an increase in this tax it will have the following affects: Lower profits Less money for reinvestment New businesses discouraged to do business
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Interest rate affect
How higher interest rates affect business It will discourage managers to take further loans If the business is providing luxurious goods, the demand will fall because the consumers will be less willing to take loan on higher interest rates Businesses with existing loan will have to pay more interest resulting in less net profit
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Examples of intervention
Examples of intervention In most of the countries cigarette manufacturers are required to state on their packing that the product in injurious There are minimum wages set by the governments Packed-food manufacturers are required to mention the calories and ingredients Manufacturing of some medicines is banned by the governments.
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Impact for intervention
Impact of intervention The businesses are not allowed to produce illegal goods and services Safe working conditions are provided to employees Increase in the business costs
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Need for intervention
Identify need for intervention To stop consumer exploitation in the hands of the business The managers may provide unsafe working conditions to employees to safe money Production of harmful goods Consumers are weak and innocent