Reference no: EM133048300

AC2.1: Evaluate the benefits and challenges to global business operations from external factors 

Benefits and Challenges 

• Technological Factors (Transport revolution; Information and communications)
• Economic factors (Increasing incomes, Global trade, World financial markets, Market forces, Global competition, Country specific differences - costs, logistics)
• Social Factors (Consumerism, Convergence in customer tastes, Education and skills, Environmental conservation, Understanding other languages and cultures)
• Political factors (Reduced trade barriers, Intellectual Property Rights, Privatisation, Technical standards, regulations, legislations, Global strategies)

AC2.2: Review the measures taken by governments to influence the activities of global business organisations 

Government policies 

• Monetary policies, interest rates, quantitative easing, unemployment
• Fiscal policies, spending (in central and local government), public sector borrowing, controlling demand, taxation, distribution of income
• Competition Policy
• Sector regulation e.g. in UK OfGem, OfQual, OfGas, CAA, OfCom - equivalents in other countries and globally where applicable
• Regional policies
• Skills agenda, apprenticeships

AC2M1: Analyse how the economic performance of a specific nation impacts on the activities of global business organisations 

Country economy 

• Size - population, labour market, education/training levels
• Growth/wealth - gross national product (GNP), balance of payments, inflation rates, government borrowing, trade balance, public finances, taxation, national debt, availability of credit
• Business confidence - investing, cost of borrowing, consumer buying/confidence, government policies

AC2D1: Evaluate the current global environment for business organisations