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BUSINESS BTEC UNIT 1 TASK 3 PASS 5 MERIT 2
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- CIE
BUSINESS BTEC UNIT 1
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Unit 1 – The Business EnvironmentTask 3
P5 & M2
Introduction:
In this assignment I will be looking at what influence the economic environment has on activities
within a business. I will be looking at the McDonald’s organisation and how they operated within
both the UK and India.
GDP:
The Gross Domestic Product (GDP) is a broad measurement of a nation’s Overall Economic activity.
The GDP is usually calculated on an annual basis, it has been known to be calculated on a quarterly
basis as well. GDP includes ALL private and public consumption, government outlays, investments
and Exports – minus the imports that occur within a defined territory.
GDP PER CAPITA:
The GDP PER CAPITA is a total measurement of a country’s output; this is found by taking the GDP of
the country and dividing it by the number of people within the country at the time it was taken. This
information is useful when choosing to compare one country to another as it shows the relative
performance of the countries. If there is a rise in the GDP PER CAPITA it signifies that the country’s
economy is growing and tends to translate as an increase in productivities.
UNEMPLOYMENT RATE:
The Unemployment rate is in reference to the amount of people in a country that are unemployed
but still being proactive and willing to find work.
INTEREST RATE:
An Interest rate is the amount charged, shown as a percentage of principal, by a lender to the
person that is paying for the use of the assets. Interest rates typically are recorded on an annual
basis, this is known as the APR – Annual Percentage Rate. The assets borrowed could be any of the
following; Cash; Consumer Goods; Large Assets (Vehicles & Buildings). The Interest Rate is essentially
a rental plan, or leasing charge to the person borrowing the assets. The Interest is dependent on the
if the borrower is a “low-risk party” or “high-risk party”; if the borrower is Low risk they will normally
be charged a lower interest rate, and for those who are high risk the opposite will happen.
INFLATION:
Inflation is a sustained – Rapid Increase – in prices. It has a worst effect on those that earn fixed
wages because of the fact that this means that there is a disincentive for them to save. When the
Pound purchases less than you would expect it to it is called inflation. This can be caused by a variety
of factors but the most common reasons are in relation to interest and debt. When the government
raises interest rates, it causes the Pound to inflate. This means that because there is an abundance
of money it loses it momentary value.
UNITED KINGDOM Impact
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