demographic changes at local, national and global level

6.1 External Influences – Social and Demographic

Demographic changes shape the way businesses operate. They tell us who the customers are, how many of them there are, and where they live. Let’s explore these changes at local, national and global levels using simple analogies, clear examples and handy exam tips.

Local Level Demographic Changes 📍

Think of a local community like a small garden. The number of plants (people) and the types of plants (age groups, income levels) determine what kind of tools (products/services) the gardener (business) needs.

• Population growth or decline in a town or city.
• Age structure – proportion of children, working-age adults, and seniors.
• Household size and composition.
• Migration patterns – people moving in or out.

National Level Demographic Changes 🇬🇧

A country’s demographic profile is like a national sports team: the mix of players (age groups) and their skills (skills/education) determine the team’s strategy (economic policy).

1. Birth and death rates – shape the natural increase.
2. Immigration and emigration – alter the net migration figure.
3. Urbanisation – movement from rural to urban areas.
4. Fertility trends – number of children per woman.

Global Level Demographic Changes 🌍

The world’s population is like a giant orchestra. Each country contributes a different instrument (age mix, fertility) and together they create the global rhythm of growth.

• Population size – currently over 8 billion.
• Growth rate – slowing in many developed regions, still high in parts of Africa and South Asia.
• Urbanisation – more than 55 % of the world lives in cities.
• Ageing – the proportion of people aged 65+ is rising worldwide.