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Business Studies IGCSEPDF 27
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The amount of income left after taxes have been deducted.
Government policy on taxation and spending to influence the economy.
Government or central bank policy controlling interest rates and the money
supply.
● Government expenditure:
Money spent by the government on public services, infrastructure, and welfare.
● Taxation:
Compulsory payments made by individuals and businesses to the government.
● Direct taxes:
Taxes charged on income or profits (e.g. income tax, corporation tax).
● Indirect taxes:
Taxes on spending, such as sales tax or import duties (e.g. VAT).
● Subsidy:
A payment by the government to businesses to lower costs and encourage
production.
● Import:
Goods and services bought from abroad.
● Export:
Goods and services sold to customers in other countries.
● Trade balance:
The difference between the value of exports and imports.
● Protectionism:
Government actions to restrict international trade to protect domestic industries.
● Tariff:
A tax on imported goods.
● Quota:
A limit on the quantity of a product that can be imported.
● Free trade:
The absence of trade barriers between countries.
● Exchange rate appreciation:
When a country’s currency increases in value relative to others.
● Exchange rate depreciation:
When a country’s currency decreases in value relative to others.
● Environmental protection:
Government measures and business actions aimed at reducing pollution and
conserving natural resources.
Disposable income:
Fiscal policy:
Monetary policy: