1.5.5 External influences - Word Drop

Influences from outside a business are known as ______ influences. They are outside a business's ______ and can change its costs, demand and decisions. Because they cannot be controlled, a business must react quickly to protect its sales.

Changes in technology can make production more ______, lowering costs per unit, and create new products. A business may invest in new equipment or sell online to stay competitive. If it does not ______ to new technology, customers may switch to rivals. Technology can also ______ markets by making old products obsolete, so firms may need to retrain staff.

New legislation, such as employment or data protection laws, forces businesses to ______ with new rules. Meeting these rules can increase ______, for example by paying for staff training. Firms must also change their ______ to avoid legal penalties.

The economic climate affects business costs and demand. The ______ is the charge for borrowing money, so higher rates make loans dearer. When interest rates rise, borrowing becomes more ______. A ______ is a period when economic activity falls, so consumer ______ falls and sales drop. A fall in the ______ means the pound buys less foreign currency, making exports cheaper for foreign buyers.