2.4 Businesses And Globalisation Flashcards
Multinational companies (MNCs)
Multinational companies or MNCs (also known as transnational corporations or TNCs) are companies that operate in a number of countries around the world.
Tariffs
A tariff is a tax on imported goods and services. Many countries place tariffs on imported goods and services to make them more expensive for businesses and consumers to buy.
Trading blocs
A trading bloc is another potential barrier to international trade. A trading bloc is a group of countries that work together to provide special deals for trading.
Product design
Product design translates the needs of consumers, or the inventiveness of entrepreneurs, into a salable 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.
Profit
Profit is the amount by which a business’s revenue from all its sales exceeds its total costs.
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.
Growth
Growth occurs when a business sells increased quantities of its products.
Economies of scale
Economies of scale occur when the cost of producing a single unit falls as output increases.
Inward investment occurs
Inward investment occurs when governments, businesses and individuals invest capital into another country, for example, building new factories or buying companies.
A takeover
A takeover occurs when one business buys control of another one.
