AQA GCSE Business (8132) · 2 Influences on business
Mini-Lesson
Influences on business
This mini-lesson covers AQA Topic 2 — Influences on business: technology, ethical and environmental considerations, the economic climate (interest rates, unemployment, inflation), and globalisation (imports, exports, exchange rates, multinationals).
Work through each screen, answer the questions as you go (some are wordy, some are calculations) and collect ⭐ stars. Press Start when you're ready.
Technology
Technology in business
Technology reshapes how businesses operate and sell:
E-commerce & m-commerce — selling online and via mobile widens the market and can cut premises costs.
Digital communication & social media — cheaper marketing and instant customer contact.
Automation — machines and software raise productivity but need investment and can reduce jobs.
Two-sided: technology can cut costs and reach more customers, but it needs upfront investment, staff training and exposes firms to cyber-security risks.
Quick check
Benefit of e-commerce?
?A small shop launches a website selling nationwide. What is the clearest benefit of this move to e-commerce?
Ethics & environment
Ethical & environmental influences
Businesses face pressure to behave ethically and reduce environmental harm.
Environmental: cutting pollution and waste, recycling, using sustainable materials.
Trade-off: ethical/green choices can raise costs and prices, but can also attract customers, improve the brand's reputation and give a competitive edge.
Sort it
Ethical, environmental or economic?
Tap an influence, then the group it best belongs to.
🤝 Ethical
🌱 Environmental
💷 Economic
Economic climate
The economic climate
Businesses are affected by the wider economy:
Interest rates — the cost of borrowing. Higher rates raise loan repayments and can cut consumer spending.
Unemployment — high unemployment usually means lower demand, but a larger pool of available workers.
Inflation — rising prices raise costs and can squeeze customers' spending power.
Interest example: a higher interest rate makes existing and new borrowing more expensive, reducing profit and discouraging investment.
Calculate
Your turn — cost of a loan
1A business takes a £20,000 loan. Simple interest is charged at 6% per year. Calculate one year's interest.
£
Hint: interest = loan × rate = 20,000 × 0.06.
Calculate
Your turn — effect of inflation
2A supplier's material costs £8.00 per unit. Inflation raises it by 5%. Calculate the new cost per unit.
£
Hint: new cost = 8.00 × 1.05 (i.e. 8.00 + 5% of 8.00).
Quick check
Effect of a rate rise?
?The central bank raises interest rates. What is the most likely direct effect on a business with a large bank loan?
Globalisation
Globalisation & the wider world
Globalisation is the growing links between economies worldwide. It affects UK businesses through:
Imports (goods bought from abroad) and exports (goods sold abroad).
Multinational companies (MNCs) — firms operating in several countries.
Exchange rates — the value of one currency against another, which changes the price of imports and exports.
Tariffs & trade blocs — taxes and agreements that affect the cost of trading.
Exchange rate rule (SPICED): a Strong Pound makes Imports Cheaper and Exports Dearer. A weak pound does the opposite.
Match it
Match the term to its meaning
Tap a statement on the left, then the correct term on the right.
Statement
Answer
Calculate
Your turn — export price abroad
3A UK firm sells a machine for £2,000. The exchange rate is £1 = €1.20. Calculate the price in euros for a European customer.
€
Hint: multiply the pound price by the euro rate: 2,000 × 1.20.
Calculate
Your turn — cost of an import
4A UK shop imports goods priced at $3,000. The exchange rate is £1 = $1.25. Calculate the cost in pounds.
£
Hint: divide the dollar price by the dollar rate: 3,000 ÷ 1.25.
Calculate
Your turn — tariff added
5An imported item costs £500. A 10% tariff is added. Calculate the total cost after the tariff.
£
Hint: total = 500 × 1.10 (i.e. 500 + 10% of 500).
Quick check
Strong pound effect?
?The pound strengthens against the euro. What happens to the price a European customer pays for a UK export priced in pounds?
Recap
The big ideas to know
Technology: e-commerce, digital communication, automation — cheaper reach but needs investment