Transcript A2 Business Structure

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