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GCSE Business Studies Revision

External Influences

How the economy, law, technology, ethics and the environment affect business decisions.

External Influences is a core part of GCSE Business Studies. Revise the key concepts and common mistakes below, then lock them in with the free games.

Key concepts

Interest rateCost of borrowing or reward for saving (%)
Exchange ratePrice of one currency in another
InflationGeneral rise in prices over time (%)
Strong pound£ buys more foreign currency — imports cheaper
Weak pound£ buys less foreign currency — exports cheaper
Real incomeIncome adjusted for inflation
CompetitionRival firms targeting the same customers
RecessionTwo quarters of negative economic growth
GlobalisationWorld trade and culture becoming more linked
TariffTax on imports raising their price
SubsidyGovernment payment to lower business costs
Pressure groupGroup lobbying firms to change behaviour
PoliticalGovernment policy and stability affecting business
EconomicGrowth, interest rates, inflation, unemployment

What your exam board covers

Where External Influences sits in each exam board's specification. Tap a board to see what it lists.

AQAInfluences on businessSpec 8132
  • Technology
  • Ethical and environmental considerations
  • The economic climate
  • Globalisation
  • Legislation

Source: AQA GCSE Business (8132) specification — Subject content, accessed 23 June 2026.

Cambridge IGCSEExternal influences on business activitySpec 0450
  • Economic issues
  • Environmental and ethical issues
  • Business and the international economy

Source: Cambridge IGCSE Business Studies (0450) syllabus, accessed 23 June 2026.

Learn External Influences step by step

Free interactive mini-lessons: short screens, worked examples and quick checks. Pick your exam board:

Other boards:EdexcelOCR

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