4.2.1 Conditions that Prompt Trade. Flashcards
What is meant by Economies of scale?
Increasing the scale of production leads to a lower cost per unit of output. Increasing size of speed increases efficiency and lower costs
What is labour productivity?
The amount of goods and services produced by one hour of labour.
What is off-shoring?
Shifting jobs to other countries.
What is outsourcing?
Shifting jobs to other organisations.
What is a product life cycle?
The stages that many products go through; development; introduction; growth; maturity and decline.
What are pull factors?
Factors that entice firms into new markets and are the opportunities that businesses can take advantage of when selling into overseas markets.
What are push factors?
Factors in the existing market that encourage an organisation to seek international opportunities.
What is risk?
The probability of a (bad) event happening multiplies by its (negative) impact.
What is 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.
