2.4 - Globalisation Flashcards
Globalisation
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
International Trade
The selling of goods and services across national borders
Exports
Goods and services produced by a business in one country and sold in another
Tariff
A tax on foreign goods imported into a country
Growth
Occurs when a business sells increased quantities of its product
Economies of scale
Occur when the cost of producing a single unit falls as output increases
Inward investment
Occurs when governments, businesses and individuals invest capital into another country, for example, building new factories or buying companies
Takeover
Occurs when one business buys control of another one
Product design
`Translates the need of consumers or the inventiveness of entrepreneurs, into a saleable product
Quality
The extent to which a consumer is satisfied with a product
Price
The amount a business asks a customer to pay for a single product
Exchange rate
The price of one currency expressed in terms of another
Import
Goods and services purchased from overseas customers in the domestic market
Profit
The amount by which a business’s revenue from all its sales exceeds its total costs
