4.2 Flashcards
Outsourcing
Moving a business function or department to a specialist external provider which may or may not be overseas
Pull factors
The conditions that exist elsewhere that appear to be more advantageous and may cause a business to move to those areas to take advantage of them
Push factors
The conditions that make a business’ current location less desirable and may cause it to leave and move elsewhere
Relocating
When a business moves to a new location. This can improve the use of premises and can lead to lower costs, such as lower rent
Risk spreading
Limit the various risk that a business faces eg avoiding over dependence upon one market
Saturated markets
Where most of the customers who would buy a product already have it, or there is limited opportunity for growth
Disposable income
The amount of money that households have available for spending and saving after taxes have been paid
Ease of doing business
The number and severity of barriers a business faces when entering a
new market/country. A high ranking means a business faces fewer
barriers. Such barriers include dealing with/amount of government regulations, access to energy sources, tax regimes, employment law
and enforcing contracts
Infrastructure
The systems and services that an economy needs to function effectively, these include transport links and communications
Subsidy
A payment to a producer to offset/lower the costs of production
Natural resources
Materials or substances occurring in nature which can be exploited for
economic gain e.g. raw materials like iron ore, coal or large forests or lakes
Global merger
When companies from different countries combine assets and operations
Intellectual property
A produce that is a creation of the mind, such as invention, that the law
protects from unauthorised use by others. It includes patents, copyrights and trademarks
Joint venture
When two or more businesses come together for a specific project. It is not a formal takeover or merger, and the businesses remain
independent of each other
Patent
Legal rights to a monopoly on a new product or process. The innovator
Patent applies to the office. Businesses cannot legally copy the patented product without permission
Global competitiveness
The extent to which a business or a geographical area such as a country, can compete successfully against rivals
Skills shortages
When employers cannot find enough workers with a particular skill
