State the role of the government in influencing decisions within local, national and international contexts and explain how business may react
• Identify need for intervention
• Show understanding of the impact of intervention in terms of business decisions e.g. what is produced and how
• Give examples of intervention both to support and control the impact of business activity on people, the economy and the environment
Demonstrate an awareness of the impact that tax and interest rate
changes might have on business decisions
• Know how interest rates affect business
• Know how different tax changes affect business
• Understand how business decisions will be affected by such changes

Explain the impact that technological change has on a business
• Understand the impact on costs, labour requirements, methods of production and marketing of technological change
Internet and e-commerce
• Define and explain the concept of e-commerce
• Evaluate the benefits and threats to both consumers and business of e-commerce

Show understanding of market changes and how these might be responded to by business
• Show understanding of why consumer spending patterns may change
• Show understanding of why markets have become more competitive
• Evaluate impact of increased competition on consumers and business

Show an awareness of the main differences between these two market systems
• Understand the reasons behind the existence of these two types of systems
• Appreciate the different outcomes of the systems in terms of choice, prices and availability of goods/services

Show an appreciation of how international trade influences an economy and its business sector by creating opportunities for growth, increased competition and consumer choice
• Explain how international trade creates opportunities and problems [threats] for business units

Demonstrate an understanding of the problems of a business when entering a new market abroad
• Understanding of problems such as lack of local knowledge, no contacts, lack of appreciation of national cultures and tastes
• Awareness of methods of dealing with such problems

• Identify the impact of competition on business in terms of consumer choice and sales
• Show awareness of the potential for consumer exploitation in uncompetitive markets

Appreciate the implications of tariff barriers, quotas and exchange rate changes for businesses that trade internationally
• Awareness of how restrictions on trade impact on businesses that export and import
• Understand the impact of exchange rate movements on competitiveness and profitability