4.2 global market and business expansion Flashcards
Economies of scale
factors that cause a producer’s average cost per unit to fall as output rises
Labour productivity
A measure of output per worker, or output per hour worked
Offshoring
the relocation of business processes and services to a lower-cost foreign location
Outsourcing
Shifting jobs to other organisations
Product life cycle
The stages through which goods and services move from the time they are introduced on the market until they are taken off the market
Pull factors
Factors that induce people to move to a new location
Push factors
Factors that induce people to leave old residences
Risk
The chance of loss from an event that can not be entirely controlled
Saturation
The point when most of the customers who want to buy a product already have it, or there is limited remaining opportunity for growth in sales
Disposable income
Income remaining for a person to spend or save after all taxes have been paid
Exchange rate
The measure of how much one currency is in relation to another
Infrastructure
The basic systems, facilities, services and capital equipment required for a country’s economy to function, which might include its roads, communication systems and power services
Reshoring
Moves jobs back from foreign to domestic locations
Trade bloc
A group of countries that work together to promote trade with one another
Franchising
selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits
Intellectual property
A product of the intellect, such as an expressed idea or concept, that has commercial value
Licensing
the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
Barriers to entry
business practices or conditions that make it difficult for new firms to enter the market
Competitive advantage
an advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices
Cost competitiveness
Keeping costs low to achieve profits and be able to offer prices that are attractive to consumers.
Cost leadership
a strategy that aims to provide a product or service at as low a price as possible to a broad audience
Differentiation
Making a product different from other similar products
Economic risk
A risk that can result in financial loss
Skills shortages
Where potential employees do not have the skills demanded by employers
