2.4 - Globalisation Flashcards
Globalisation
Globalisation is the
trend for markets to
become worldwide in
scope.
multinational
company (MNC)
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 scale
Economies of scale
occur when the cost of
producing a single unit
falls as output increases.
Inward investment
Inward investment occurs when qovernments, 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 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.
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.
Profit
Profit is the amount
by which a business’s
revenue from all its sales
exceeds its total costs.
