Cambridge IGCSE and O Level Business Studies

Section 6 – Mind maps

24  Economic issues
Economic objectives

Economic
objectives

Economic Low Healthy balance

Low inflation
growth unemployment of payments

Economic policies

Economic
policies

Fiscal Monetary

Government Government
Interest rates
income (taxation) spending

Direct taxation Indirect taxation

Income tax Corporation tax VAT

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Cambridge IGCSE and O Level Business Studies

25  Environmental and ethical issues

Impact of business activity on the environment

Impact of
business activity
on the
environment

Positive Negative
externalities externalities

Social benefits Social costs

Methods used by pressure groups

Methods used by
pressure groups

Increasing awareness
Demonstrations Boycotts Petitions Lobbying of issues through
websites and media

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Cambridge IGCSE and O Level Business Studies

Ethical issues faced by businesses

Failing to tell
customers about
extra cost
Finance

Insider trading

False
advertising

Providing
unsafe
Marketing products

Not disclosing
risks associated
with products
or services

Ethical issues
faced by Unequal pay
businesses

Child labour
Human
resources
Sweatshops

Discrimination
against
employees

Dumping

Illegal waste
Operations
disposal

Exceeding
pollution limits

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Cambridge IGCSE and O Level Business Studies

26  Business and the international economy

Characteristics of globalisation

Characteristics of
globalisation

Process by which countries

are connected with each
other because of the trade
of goods and services

Growth in international Dependency on global Greater movement of Companies operating Brands recognised
trade economy products, services, in more than worldwide
money and people one country

Benefits to a business of becoming a multinational company

Easier access to
raw materials

Lower cost of
labour

Economies of
scale

Benefits of Access to bigger

becoming an MNC markets

Lower production
costs

Spread of risk

Premium pricing

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Cambridge IGCSE and O Level Business Studies

Impact on businesses of changes in the exchange rate

Appreciation of Depreciation of
exchange rate exchange rate

Imports Imports become

become cheaper more expensive

Exports become Exports become

more expensive cheaper
overseas overseas

Effect of multinationals on the host country

Effect of MNCs on
the host country

Positive Negative

Improves Environmental
infrastructure damage

Generates income Exploitation of

in the form of tax labour

Increased
Increases
competition for
employment
local companies

Improves
the country’s Social impact
reputation

Increases choice
Exploitation of
of goods and
natural resources
services

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