(Political) 1. Explain how a change in law eg national minimum wage can impact upon a business.: The introduction of a national minimum wage has lead to an increase in wages costs which has reduced profits for a business, (Economic) 2. Explain how a change in interest rates eg an increase can impact upon a business.: People are less likely to borrow if the interest rate is high, demand for goods/services may fall meaning sales fall and profits fall. If the business has a loan, interest charges increase which increase costs and reduce profits , (Social) 3. Explain how a change in fashion/trends can affect a business.: Businesses must continually do market research to find out what their customers want, this can be time-consuming and costly which reduces profits] [If they don’t provide the goods/services that customers want sales will fall and profits will fall.], (Competition) 4. Explain how competition can impact upon a business.: If a competitor offers a special deal your customers will buy from the competitor and sales will fall reducing profits.] [You may need to lower selling price reducing profits.], (Environmental) 5. Explain how the weather can impact upon your business.: If you are an ice-cream seller then you will sell more during the summer and your profits will increase., (Technological) 6. Explain how changes in technology can impact upon your business.: If you are slow to react to changes in technology, then your competitors may take away customers and profits from your business ,

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