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Business Studies IGCSEPDF 28
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Externality:
The positive or negative effects of a business’s activities on society that are not
reflected in market prices.
● Pollution:
The contamination of the environment through harmful emissions or waste.
● Sustainability:
Operating in a way that meets present needs without compromising future
generations’ ability to meet theirs.
● Pressure group:
An organisation formed to influence businesses or government policy on specific
issues.
● Ethical decision-making:
Choosing actions that are morally right and socially responsible.
● Corporate Social Responsibility (CSR):
A business’s commitment to acting ethically and contributing to economic
development while improving life for employees, local communities, and society.
● Globalisation:
The growing interdependence and connectedness of countries through trade,
investment, and communication.
● Multinational company (MNC):
A business that operates in more than one country.
● Benefits of MNCs to host countries:
❖Job creation
❖Transfer of skills and technology
❖Increased tax revenue
❖Economic growth
● DrawbacksofMNCstohostcountries:
Exploitation of labour
Environmental damage
Profit repatriation (profits sent back to home country)
Local businesses may struggle to compete
Exchange control:
Government restrictions on buying and selling foreign currency.
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