IGCSE Business Studies Term 1

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Presentation transcript:

IGCSE Business Studies Term 1 National wealth and the impact of business activity

What will I learn ... The impact business has on the environment (pollution and global warming) The impact business development could have on National Wealth The impact business development could have on natural resources and sustainable development

National Wealth Becoming Environmentally friendly can: Add to the costs of a business – very expensive! Create good Public Relations Result in new customers Lead to development of new technologies So, what would these be on a SWOT? Why do companies need to change the way they do things now?

Waste ... How much waste do you create in a day? What type of waste was it? Was it “necessary” waste? What is it made out of? Is it biodegradable? How is it disposed? Where does it go? What is the impact on the environment?

What if companies don’t adapt? Ethical Objectives Social implications are considered Opportunities are created Fulfilling a market demand for “friendly” products What if companies don’t adapt?

External Costs v’s External Benefits Key Word: EXTERNALITIES – business activities that have an impact outside the company Imaging a tunnel being built right through Mount Eden in order to cut down on traffic congestion What External Costs can you think of? What is a External Benefits can you think of?

HOMEWORK Make a list of the external benefits and costs for producing and using coal. Do you think that the benefits outweigh the costs? Justify your answer!