OTHER EXTERNAL INFLUNCES ON BUSINESS

1.      Technological change: Changes in products or the ways products are made resulting from research into new ideas.

Examples: Mobile phones with cameras.

2.      Pressure group: Groups of people who share a common interest and take action to achieve the changes they are seeking.

3.      Private costs:  The costs to producers and consumers of an economic activity.

4.      External costs: The cost of an economic activity paid for by the rest of society, not the producers/consumers

5.      External benefits: The benefits of an economic activity received by the rest of society other than producers/consumers.

6.      Private benefits: The benefits of an economic activity to producers/consumers.

Cost benefit analysis: An analysis usually carried out the government, into the overall costs and benefits of a large new project