3.7.5 Analysing the external environment to assess opportunities and threats: economic change Flashcards

1
Q

GDP

A

The total market value of all final goods and services produced annually in an economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Different aspects of GDP

A
  • Boom
  • Recession
  • Slump
  • Recovery
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Taxation

A

A payment that has to be made to the government or other authority by households, firms or other organisations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Exchange rate

A
  • The measure of how much one currency is worth in relation to another
  • £1 = €1.25
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Inflation

A

A general and progressive increase in prices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Fiscal policy

A

The use of taxes and spending to manage the level of economic activity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Monetary Policy

A

Controlling the amount of money and/or interest rates within the economy in order to achieve the desired level of economic activity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Open trade

A

Countries are able to trade freely with one another with no tariffs or quote imposed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Protectionism

A

Economic policy of shielding an economy from free entry of imports into a country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Globalisation

A

The trend for many markets to become worldwide in scope

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Emerging markets

A

Countries in the process of rapid growth & industrialisation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Reasons for greater globalisation of a business

A
  • Falling cost of international transport and communications
  • Growth of global trading blocs and reduction of barriers to trade
  • Growth of multinational companies
  • Increasing global incomes and growing demand for goods and services
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Importance of globalisation for businesses

A
  • Increased sales, revenue and profits
  • Cheaper resources
  • Economies of scale
  • Developing different products for different markets
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Globalisation can lead to…

A
  • Downward pressure on prices
  • New producers
  • Increased need for investment
  • The threat of takeover
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Emerging economies are important because…

A
  • They provide enormous labour sources
  • They offer large markets
  • They have rapid growth rates
  • Some emerging markets have extensive natural resources
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

BRICS

A
  • Brazil
  • Russia
  • India
  • China
  • South Africa
17
Q

MINT

A
  • Mexico
  • Indonesia
  • Nigeria
  • Turkey