KS4 Curriculum Booklet 2017 - 18

Curriculum Overview KS3

Subject: Business Studies Overview effective from[date ]: September 2017

3.2.3 The economic climate on businesses

Learning objectives

Suggested timing (hours)

Learning activities and resources

Specification content

Additional guidance

To demonstrate and understand how businesses might be affected by changes in the rate of interest.

1

Reference – Tutor2u webpage on interest rates Teacher introduction on interest rates – BBC Bitesize webpage on interest rates Show overdraft and loan figures Graph showing changing interest rates Show Barclays loan calculator to illustrate impact of changing interest rates. How does this impact business spending? Show average property prices in your area or for a particular property – explain how mortgages work. Choose a mortgage Show average incomes – calculate how much money would be left after the mortgage is paid – this is spending money (disposable income). Explain and illustrate the impact of increasing interest rates and thus mortgage payments. Students list other reasons for consumers requiring loans or credit – cars, sofas, credit cards, home improvements etc. Good overview video on how interest rates impact businesses and consumers Definition of unemployment. Show unemployment graph – students to explain what the graph shows and what this means for individuals and businesses.

Interest rates

An understanding of how fluctuating interest rates can affect businesses that rely on overdrafts and loans for finance. Economic theory relating to how/why interest rates change is not required.

1

To understand how fluctuating interest rates can affect consumer and business spending.

1

Level of employment

To identify how and why businesses might be affected by changes in levels of employment.