4.1 Globalisation Flashcards
What is a push factor?
Something that pushes a business away from a global market
What is a pull factor?
Something that attracts a business to a global market
Why do businesses want to target international markets?
- Achieve economies of scale
- Build brand value
What is Globalisation?
Where a business expands through a foreign market
What an emerging economy?
an economy in the process of rapid growth and industrialisation?
What are trading blocs?
Groups of countries in specific regions that manage and promote trade activities
What are imports?
Good/ services bought from overseas
What are exports?
Goods/ Services sold to overseas
What is Foreign Direct Investment?
Occurs when a business purchases in non-current assets in another country
What is trade liberalisation?
The removal of trade barriers
What is division of labour?
Different workers specialising in different productive activities
What is business specialism?
A production strategy to focus on a limited number of products or services
What is portectionism?
The act of guarding a countries industries from foreign competition
What is a tariff?
A tax on imported goods and services
What is an import quota?
A governmental restriction that sets a limit on the quantity of a certain product that can be imported into a country over a certain period of time
What are subsidies?
A loan given from the government to support countries from the same nation
What are trading blocs?
A union of countries that trade without taxes/ Tariffs
What is dumping?
The sale of a product by a foreign company for less than its production cost in a domestic market
Whats a comparative advantage?
A country specialises in products and services that it can product more efficiently in other countries
What is specialisation
focusing on one or more product to become more efficient
What is the ethnocentric approach
Where a business keeps its products the same when expanding into foreign markets
What is the geocentric approach
A mix between ethno/polycentric
What is the polycentric approach
Changing in every different market
