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Cambridge IGCSE Business Studies Section 6 External influences on business activity
Globally, many governments are trying to deal with the issue of waste
TOP TIP by introducing initiatives based on the 3Rs – reduce, reuse and recycle.
Remember, externalities can Businesses are also trying to be more environmentally friendly by reducing
be positive and negative.
the amount of natural resources they use and recycling their waste.
Not all types of waste can be recycled. For example, electrical waste such as
computers and packaging waste often ends up in landfill where toxic chemicals and
harmful gases then flow into the ground and air.
Waste is not just a problem caused by primary and secondary sector
businesses. A good example is packaging and plastic bags. Although packaging is
a very important part of the marketing mix, packaging waste can have a serious
impact on the environment. Many businesses are trying to reduce the quantity of
Packaging: see Chapter 12,
page 167. packaging materials that they use. For example, the sports and lifestyle company
Puma has changed the packaging design for its shoes. Unlike a traditional
shoebox, the new design uses less cardboard and the container can be reused
afterwards as a shopping bag, which can be recycled.
Emission of greenhouse
gases
Greenhouse gases such as
carbon dioxide and methane
are naturally found in
the environment. When
manufacturing businesses and
others burn fossil fuels such
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as coal and oil, the amounts
of greenhouse gases in the
atmosphere greatly increase.
Heating and air conditioning
systems release greenhouse
gases from offi ces and factories
into the atmosphere which lead
to global warming.
Use of energy
Office equipment, lighting,
When factories burn fossil
heating and air conditioning,
fuels, they increase the amount
and machinery use large amounts of a country’s energy sources such as coal,
of greenhouse gases in the
gas, oil and electricity. Coal, gas and oil are natural resources that cannot be
atmosphere
replaced once they have been used. By turning off lights and equipment when
not working, businesses reduce the amount of energy they use. Many countries
are developing renewable sources of energy such as wind and solar power.
These do not produce greenhouse gases and can easily be replaced.
EXPLORE!
Which type of pollution aff ects Use of natural resources
your country the most? Is Many manufacturing businesses use non-renewable raw materials which may
it caused by any particular
lead to scarcity. Overfishing and deforestation (cutting down of large numbers of
industries? What steps has the
government taken to control it? trees) can affect the plants and animals in those areas, destroying their natural
food source or habitat. Deforestation contributes to global warming.
