2.1 Flashcards
Define e-commerce
commercial transactions conducted electronically on the internet.
Define ethics
moral principles that govern a person’s behaviour or the conducting of an activity.
Environmental defined?
relating to the natural world and the impact of human activity on its condition.
Define digital communication
the electronic exchange of information, data, or messages
Definition of a trade off
exchange something of value, especially as part of a compromise
Define global warming
the current rise in the average temperature of Earth’s air and oceans
Define scarce resources
the demand for a good or service is greater than the availability of the good or service
Define interest rates
the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding
Define the economy
The economy is made up of millions of individual consumers, many thousands of businesses and governments. All take decisions on what to buy and produce.
Define Consumers
Consumers are individuals who buy goods and services from businesses.
Define the economic climate
The economic climate describes the state of key factors within a country such as the level of goods and services produced and the number of jobs available.
Define interest rates
Interest rates refer to the cost of borrowing money or the reward for saving money, expressed as a percentage.
Define Globalisation
Globalisation is the trend for markets to become worldwide in scope.
Define Quality
Quality is the extent to which a consumer is sayisfied with a product.
Define imports
Imports are goods and services purchased from overseas customers in the domestic market.
Define Product Design
Product design translates the needs of customers, or the inventiveness of entrepreneurs, into a saleable product.
Define Economies of scale
Economies of scale occurs when the cost of producing a single unit falls as output increases.
Define inward investment
Inward investment occurs when governments, bussinesses and individuals invest capital into another country, for example, building new factories or buying companies.
Define international trade
International trade id the selling of goods and services across national borders.
Define Exports
Exports are goods and services produced by a business in one country and sold in another.
Define a Multinational company (MNC)
A multinational company (MNC) produces goods and services in more than one country. They are also called transnational corporations (TNCs).
What is markets?
Markets exist where there are buyers and sellers.
What is competition?
Competition exists when more than one business is attempting to attract tye same customers.
What is a monopoly?
A monopoly exists when a business does not face any competition in a particular market.
What is a market share?
Market share is the percentage of sales in a particular market recorded by a business.
What is uncertainty?
An uncertainty occurs when there is a lack of information about a situation. This means the outcome or consequences are very difficult to predict.
What is risk?
Risk is the possibility of something going wrong.
What is just-in-case production?
Holds stocks just in case there is a delay from supplies or a sudden unexpected increase in demand.
What is purchasing economies of sale?
Occur when the cost per unit falls if large orders are placed with suppliers due to a bulk discount.
What is procurement?
(or purchase) Involves selecting suppliers, establishing the terms of payment and negotiating the contract.
What is the supply chain?
The supply chain refers to all the businesses, people and activities that take part in the production processes from the start until it gets to the customer.
What is logistics?
Logistics refers to the movement of goods, services, information and money throughout the production process.
