2.4 Flashcards
Globalisation
Globalisation is the trend for markets to become worldwide in
scope.
A multinational company (MNC)
produces goods and services in more than one country. They are also called transnational corporations (TNCs).
International trade
International trade is the selling of goods and services across national borders.
Exports
Exports are goods and services produced by a business in one country and sold in another
Tariff
A tariff is a tax on foreign goods imported into a country.
Growth
Growth occurs when a business sells increased quantities of its products.
Economies of sale
Economies of scale occur when the cost of producing a single unit falls as output increases.
Inward investments
Inward investment occurs when governments, businesses and individuals invest capital into another country, for example, building new factories or buying companies.
Takeover
A takeover occurs when one business buys control of another one.
Product design
Product design translates the needs of consumers, or the inventiveness of entrepreneurs, into a saleable product.
Quality
Quality is the extent to which a consumer is satisfied with a product.
Price
Price is the amount a business asks a customer to pay for a single product.
Exchange rate
An exchange rate is the price of one currency expressed in terms of another.
Imports
Imports are goods and services purchased from overseas customers in the domestic market.
Profits
Profit is the amount by which a business’s revenue from all its sales exceeds its total costs.
