12D: External Environment Video Review

What are some of the factors outside the business's control that can affect its costs and demand?

• Technological advancements and employee turnover

• Interest rates and market conditions

• Consumer preferences and advertising strategies

• Government regulations and employee benefits

How does competition affect marketing costs for a business?

• Competition leads to free marketing

• Competition increases marketing costs

• Competition has no impact on marketing costs

• Competition leads to lower marketing costs

What is the likely impact of high competition on the demand for a business's products?

• High competition leads to higher demand

• High competition leads to stable demand

• High competition has no impact on demand

• High competition leads to lower demand

How does limited competition affect the price elasticity of demand for a business's products?

• Limited competition leads to elastic demand

• Limited competition has no impact on demand elasticity

• Limited competition leads to inelastic demand

• Limited competition leads to stable demand elasticity

What impact does high unemployment have on labor costs for businesses?

• High unemployment leads to lower labor costs

• High unemployment has no impact on labor costs

• High unemployment leads to higher labor costs

• High unemployment leads to stable labor costs

How does an aging population affect demand for certain industries?

• Aging population leads to stable demand

• Aging population leads to higher demand

• Aging population has no impact on demand

• Aging population leads to lower demand

What is the likely impact of increasing incomes on the demand for luxury goods?

• Increasing incomes lead to stable demand for luxury goods

• Increasing incomes lead to lower demand for luxury goods

• Increasing incomes have no impact on demand for luxury goods

• Increasing incomes lead to higher demand for luxury goods

How do low interest rates affect consumer behavior?

• Low interest rates lead to stable consumer behavior

• Low interest rates lead to higher savings

• Low interest rates have no impact on savings

• Low interest rates lead to higher spending

What impact does high immigration have on the supply of workers in a particular industry?

• High immigration leads to higher supply of workers

• High immigration leads to stable worker supply

• High immigration has no impact on worker supply

• High immigration leads to lower supply of workers

How does undertaking fair trade practices affect a business's costs?

• Undertaking fair trade practices leads to lower costs

• Undertaking fair trade practices has no impact on costs

• Undertaking fair trade practices leads to higher costs

• Undertaking fair trade practices leads to stable costs