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AS Business Studies BUSINESS STRUCTURES Classifications of Business ... How have the Sectors changed over time? Industrialisation and Deindustrialisation Why have they changed? How is each Sector measured? Unemployment levels Output Increase in Secondary Sector ... Benefits? GDP increases – raising the standards of living Lower imports and higher exports Increased employment Tax to the government “Value added” to the country’s raw materials Increase in Secondary Sector ... Problems? Movement of people – housing and social effects Imports of raw materials (import costs/effects on the Primary sector!) Multi National company domination Classifications of Business ... Page 18 – Table 2.1 ... Look at the figures Interpret what is happening in each country. Give your reasons for the differences (you can make assumptions! For each country, how do you think the trends will change in the future? Justify your answers! Public and Private Sectors Revision from last year ... What is the difference? Mixed Economy ... Free-Market Economy ... small Public Sectors – very little state intervention Command Economy .... small Private Sector – owned, planned and controlled by the State HOMEWORK ... REVISE AND RECAP BUSINESS OWNERSHIP ... WE WON’T BE GOING OVER THESE AGAIN! PRIVATISATION SELLING STATE OWNED AND CONTROLLED BUSINESS ORGANISATIONS TO INVESTORS IN THE PRIVATE SECTOR Public-Private Partnerships (PPP) Government Funded (Privately run and controlled) Private-sector funded (State run and controlled – leased by a private organisation – eg private hospital) Private v’s Public ... http://tvnz.co.nz/business-news/key-flags-air-nz-modelasset-sales-4007787/video http://tvnz.co.nz/politics-news/economist-bernard-hickey-talks-latestfinancial-announcements-5-49-video-4008065 PRIVATISATION OF ASSETS Do you consider the part sale of SOE’s (State Owned Enterprises) to be a good idea? Put together your argument for and against “part” privatisation JUSTIFY your argument points ... However ... Consequently ... On the other hand ... Evidence suggests that ... (research!!!) CONCLUDE by summing up what has been said !!! Trading Links/Free Trade WTO – World Trading Organisation freeing world trade from restrictions reducing tariffs and quotas (protectionism) What are the concerns for China joining the WTO? Free Trade Blocs Groups agreeing to trade with each other without restriction NAFTA (Americas), ASEAN (South Asia), EU (Europe) What is the problem with these blocs? JARGON/TERMS Free Trade No restrictions or trade barriers that could prevent trade Globalisation The increase in the freedom of movement of goods, capital and people Tariffs – taxes imposed Quotas – limits on quantity or value of goods Voluntary export limits – limits set to avoid setting of tariffs Protectionism – all of the above !!! Barriers to Free Trade – to protect the domestic market Trading Links/Free Trade http://www.youtube.com/watch?v=xRJZWfqWcs0 http://www.youtube.com/watch?v=GCnrd7NW9r8&featu re=related http://www.youtube.com/watch?v=9rgdahE5t3o
