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Objective 1 Explain the concept of business technology
The concept of business technology:
Business technology refers to applications of science, data, engineering and information
for business purposes such as the achievement of economic and organizational goals.
The main element of technology is the idea of change and how it can affect business and
society.
Objective 2 Explain the role of information communication technology in business
Role of technology in business:
Information communication technology (ICT) is considered to be all new uses of digital
technology that exist to help individuals, businesses and organizations to use information.
Information communication technology is therefore concerned with the storage,
retrieval, manipulation, transmission or receipt of digital data. Additionally, it is also
concerned with the way these different uses can work with each other.
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Objective 3 Describe ways in which technology has influenced banking and
commerce
Technology and its influence on banking and commerce:
1. ATMs and ABMs machines
Technology has influenced banking by the introduction of automated teller
machines (ATMs) and automated banking machines (ABMs). These machines
facilitate the deposit and withdrawal of funds, as well as other services without
having to go into a bank to access teller services.
The location of ATMs in hotels, petrol stations, supermarkets and malls add to the
bank.
2. Online banking
The practice of online banking enables customers to access their accounts from
home and other locations using personal computers or smartphones. This facility
enables customers to check their balances from the comfort of their homes and
permits easy and convenient payment of utility and other bills.
Customers with more than one account can also use this facility to transfer funds
from one account to another.
3. E-commerce
Through electronic commerce (e-commerce), the use of the internet helps
individuals and businesses to be able to make business transactions via the world
wide web (WWW) without having to visit a physical store. E-commerce has given
rise to many online stores which permit customers to browse for products and pay
for them electronically.
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Objective 4 Describe types of information communication technology used in
business
Traditional:
a) Productivity tools, for example
Word
Excel
Database software (Access)
Presentation software (PowerPoint, Prezi)
Graphic designing software (Adobe Photoshop)
b) Specialist applications
Accounting (QuickBooks, Peachtree)
Computer-Aided Design (CAD)
The use of computers or workstations to aid in the design, creation or
modification and analysis of a design.
Management Information Systems (MIS)
Information systems that are used for decision making and coordination,
control, analysis and visualization of information in an organization. The
study of MIS involves people, processes and technology.
Digital communication technologies:
Internet
Mobile
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Objective 5 Distinguish between e-commerce and e-business
electronic networks
electronic network technology including the internet and electronic data.
What is e-commerce?
E-commerce covers outward-facing processes that touch customers, suppliers and
external partners including sales, marketing, order taking, delivery, customer
service, purchasing of raw materials and supplies for production and procurement
of indirect operating expense items such as office supplies. It involves new
business models and the potential to gain new revenue or lose some existing
revenue to new competitors.
What is e-business?
E-business includes e-commerce but also covers internal processes such as
production, inventory management, risk management, product development,
finance knowledge management and human resources.
E-business strategy is more complex, more focused on internal processes and
aimed at cost savings and improvements in efficiency, productivity and cost
savings.
Objective 6 Identify ways in which information communication technology can be
used to improve the efficiency of business operations
Ways in which technology can improve business:
1. Speed and time
2. Easier storage management
3. Improved sharing of information
4. Automation the use of a wide range of technologies that reduce human
intervention.
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Benefits of technology to businesses:
1. Reach more potential customers and develop business relationships with
potential customers
2. Provide better service to customers
3. Streamline operations, reduce costs, improve efficiency, maximise profits, and
minimise wastage
4. Allow customers to better guide the business
5. Support better relationships with key partners
Objective 7 Discuss the ethical implications of the use of information
communication technology in a business
Consequences of unethical use of ICT:
a) Security
b) Privacy
c) Intellectual property infringement
d) Impact on humans
e) Distraction
Objective 8
quality of life
What is the standard of living?
.
Level of consumption of goods and services
Average disposable income of the population
Level of national ownership of capital employed
Access to modern technology
Level of investment in research and technology
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What is the quality of life?
Quality of life refers to the extent to which the population of the country enjoys
the benefits of its wealth.
I quality of living:
The extent of security enjoyed
Availability of educational, health and recreational activities
Diet and nutrition
Life expectancy
Access to public utilities such as electricity, potable water, technology
Rate of infant mortality
Objective 9 Explain national income and its variations
Definitions:
National Income (NI) The total monetary value of all goods and services.
Gross Domestic Product (GDP) The total monetary value of goods and services
produced with
Gross National Product (GNP) The total monetary value of goods and services produced
using ONLY the resources owned by residents of a country, regardless of wherever these
resources are located.
Per Capita Income (PCI) Average income earned per person in a given area.
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Objective 10 Explain how each of these concepts affects growth and development
and impact standard of living and quality of life
What is economic growth?
The economic growth of a country may be seen as an increase in the productive
capacity of the economy. It provides a means of achieving higher living standards
as more goods and services are provided
It is a quantitative change in the goods and services that are available for
consumption.
What is economic development?
Economic development may be seen as the reduction and eventual elimination of
unemployment, underemployment, poverty and inequalities in the distribution of
wealth and income.
It is a qualitative change. This could be done by achieving growth and increasing
the standard of living
Now that we know the terminology, think about this
During a boom, unemployment is reduced, output and investments are high. There may
be upward pressure in prices and a balance of payments deficit as imports increase due
to high levels of demand.
In the recession period, the output is at least not rising or may even be falling.
Unemployment may be prevalent as there is no increase in capital.
Now we will look at factors that affect the growth and development of a country.
Factors affecting growth and development:
Rate of investment
Rate of increase in the working population
Technical training and education
Migration
Government expenditure
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Objective 11 Describe the role of education in economic growth and development
How education can improve the workforce leading to increased output:
1. It helps to improve the knowledge and skills of the workforce.
2. Better educated people are more able to adapt to changes that are necessary for
a developing economy.
3. Education makes people more literate, which is important for communication
skills.
Objective 12 Outline the reasons for international trade
Reasons why countries trade with each other:
1. A country may not be able to produce the goods and services they need in
quantities or of the quality that they require.
2. One country may not be endowed with certain assets or have the natural resources
such as land, labour, capital or enterprise to produce the goods that they need.
3. A country may not have the climate to grow certain foods and have to depend on
trade to get them. (e.g. Wheat in the United States, Apples in Canada)
4. International Trade allows for foreign investment allowing one country to invest
money in foreign companies and other assets.
Objective 13 Identify the functions of major economic institutions and systems
a) Caribbean Community (CARICOM)
CARICOM is a group of 20 countries, 15 member states and 5 associate
members.
It came into being on July 4th 1973, with the signing of the Treaty of
Chaguaramas in Trinidad and Tobago.
Its objective is to promote economic integration and cooperation among its
members, to ensure that the benefits of integration are equitably shared
and to coordinate foreign policy.
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Functions include: to improve the standard of living; working for
coordinated and sustained economic development.
b) Caribbean Single Market Economy (CSME)
It is an arrangement among the CARICOM states for the creation of a single
enlarged economic space through the removal of restrictions resulting in
the free movement of goods, services, capital, and technology.
CARICOM national has the right to establish a business in any participating
CARICOM member states.
c) Caribbean Development Bank (CDB)
The CDB is a financial institution that helps Caribbean nations finance social
and economic programmes in its member states.
The headquarters is located in Barbados.
It has a membership of 28 countries which consists of 19 regional borrowing
members, 4 regional non-borrowing members and 5 members from outside
the region.
d) International Bank for Reconstruction and Development (IBRD)
The IBRD is an international financial institution and the largest
development bank.
The bank aim is to reduce poverty in middle-income and creditworthy
poorer countries by giving development through loans, guarantees and risk
management products.
It was founded in 1944, with its headquarters being in Washington D.C., U.S.
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e) World Bank
The world bank is an international financial institution that provides loans
and grants to the government of low and middle-income countries to
pursue capital projects.
It was founded in 1944, New Hampshire, U.S.
It is headquartered in Washington D.C., U.S.
f) International Monetary Fund (IMF)
The International Monetary Fund is an international organization that aims
to promote international financial stability and monetary cooperation. It
also facilities international trade and helps to reduce global poverty.
g) World Trade Organization (WTO)
The WTO is the only international organization that deals with the global
rules of trade. Their main objective is to ensure that trade flows as
smoothly, predictably and freely as possible.
It was founded on January 1st 1995.
It is headquartered in Geneva, Switzerland.
h) Organization of American States (OAS)
The OAS is primarily focused on promoting democracy, coordinating
security and law enforcement operations, providing technical and financial
assistance for development projects, and monitoring human rights through
the inter-American legal system
It consists of 35 members, 21 being original members.
It was founded on April 30th 1948.
It is headquartered in Washington, D.C., U.S.
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Objective 14 Explain how economic institutions and trade agreements impact the
Caribbean
The impact that each of these institutions/agreements can have on the Caribbean:
1. Lead to economic growth and development by providing a single space for the
production of competitive goods and services.
2. It can attract investment opportunities.
3. Access to more affordable raw materials or goods and services.
4. Better chance of developing at a faster pace by sharing expertise and resources.
5. Cooperating in areas of health, education and technology.
Objective 15 Identify major economic problems in the Caribbean
Major economic problems in the Caribbean:
a) Unemployment in some cases even underemployment.
b) Population density is the number of individuals per unit geographic area.
c) Migration the movement of people to foreign countries.
d) Debt burden external debts incurred by the government of developing countries.
e) Sourcing Capital and raw materials
f) Economic dualism where some countries are more technologically advanced
while others are technologically retarded.
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Objective 16 Outline appropriate solutions to major economic problems in the
Caribbean
Possible solutions to economic problems:
1. Access to Foreign Direct Investment (FDI) when foreign investors setup up a
business in the country.
2. Development of human resources training and education.
3. Development of manufacturing, distribution and export sectors
4. Development of technology to generate economic activity
Objective 17 Explain the role, benefits and impact of foreign investment
Foreign investment can be split up into two main types:
Foreign Direct Investment an investment in the form of a controlling ownership
in a business in one country by an entity based in another country.
Foreign Indirect Investment involves corporations, financial institutions and
private investors buying stakes in foreign companies that trade on a stock
exchange.
It includes not only equity instruments such as stocks, but also debt instruments
such as bonds
Positive impacts of foreign investment in the Caribbean:
Helps reduce the unemployment rate
Helps to improve the balance of payment
Increases capital
Negative impacts of foreign investment in the Caribbean:
Most of the profits are sent to the foreign country
In the long run, the balance of payments will deteriorate
Foreign investment has the potential to create a dual economy
(Two separate economic sectors in one economy, divided by different levels of
development and technology)
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Objective 18
What is the balance of trade?
oods
and services for a period. It is an important element of the balance of payments.
When the export is greater than import, it is said to be favourable as a
surplus has been experienced.
When the export is less/imports are greater than exports, the difference is
said to be unfavourable or adverse and a loss or deficit has been
experienced.
What is the balance of payments?
Balance of payments (BOP) is a tabulation of all credit and debit transactions of the
country with foreign countries during a specific period.
The balance of payments is a statement recording the difference of all payments
made to foreign countries and the total payments received from them.
The balance of payments includes:
i. Current account this records the trade in goods and services.
ii. Capital account this records flows for investment and saving.
Correcting an unfavourable balance of payments:
Drawing on the IMF
Soliciting loans from abroad
Borrowing from another country
Selling assets
Devaluation
Drawing on reserves
Import control
Quotas