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A-Level Business 2 > 4A > Flashcards

4A Flashcards

1
Q

Economic growth

A

Increase in the quantity of goods and services produced ion a country in a time period.

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2
Q

What is a emerging market

A

Economic growth=5%+ growth

BRICS
Philippines=7.7 in 2022

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3
Q

Affects on Individuals of a high rate of economic growth

A

More jobs
higher standard of living
Education
Healthcare
better infrastructure.

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4
Q

Affects of a higher rate of economic growth on businesses

A

More investment
increased sales
lower barriers to entry
increased government grants

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5
Q

-ves of high rate of economic growth

A

Increased inequality
higher inflation
competition from abroad
cultural dilution
increased pollution
increased congestion

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6
Q

International trade

A

The exchange of goods and services between countries

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7
Q

Why do countries trade goods and services

A

Countries have access to different natural resources so can produce certain products that others cannot.
Different countries have access to different technology so can produce different goods.
It promotes goodwill and strong relations between countries
products imported from overseas can satisfy demand levels
it gives consumers greater choice.
Larger markets for businesses
governments can earn money on trade through exporting

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8
Q

Import

A

Products made overseas, sold to your country

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9
Q

Export

A

product made in the UK, but sol abroad.

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10
Q

-ves of international trade

A

-taxes and tariffs lead to increased prices
-reliance on imported goods
-over-specialisation on specific products leads to an inability top respond to demand changes
-loss of small businesses-cannot compete with price of imported goods
increased U

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11
Q

Business specialisation

A

When a country or business concentrates on the production of as very specific group of goods and services

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12
Q

+ves of specialisation

A

-higher output
-increases quality
-greater efficiency
-lower prices
-EoS

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13
Q

-Ves of specialisation

A

-over reliation on imports
-vulnerable to changes in demand
-structural U

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14
Q

Globalisation

A

The growing integration of the world economies, leading to increasing interdependence

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15
Q

Factors contributing to globalisation

A

-less trade barriers
-reduced transport costs
-increased fdi
-increased migration

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16
Q

-ves of globalisation

A

-Only benefit richer countries
-richer become richer
dilution of local cultures
-increased pollution
race to bottom
-tax avoidance

17
Q

What is FDI

A

Occurs when a business or government from one country to another invests in business operations in other countries.

eg nissan in Sunderland

18
Q

How do some countries go about attracting FDI

A

-Tax breaks
-subsidies
-infrastructure investment

19
Q

How can FDI be beneficial to country receiving it

A

-job creation
-training for workers
-sharing ideas
-investment in infrastructure
-increased consumer choice, lower prices
-multiplier effect from employment

20
Q

How can FDI be beneficial to the company investing overseas

A

-lower production costs-cheaper workers and raw mats
-increased mkt size
brand recognition
govt incentives

21
Q

How can FDI promote economic benefits in the country receiving it

A

-increased g and s
-increased tax rev
-trade surplus

22
Q

-ves of FDI

A

-exploitation of workers
-exploitation of natural resources
-pollution
-structural U and Wipeout local bus

23
Q

What is protectionism

A

The restriction of trade by a country, limit imports to protect businesses.

24
Q

Purpose of Protectionism

A

-protect domestic jobs and structural U
-protect dumping of cheap products
raise tax rev
-prevent harmful goods
-improve trade figures

25
Q

Main types of protectionism

A

-tariffs-tax on import
-quota-upper limit
-embargo- ban on imp
-subsidies for domestic bus
-legislation
-red tape

26
Q

-ves of protectionism

A

-retaliation
-domestic business may rely on subside cushion and become inefficient

27
Q

What is a trading bloc

A

A group of countries that agrees to reduce/eliminate trade barriers among members

28
Q

Degrees of trading blocs

A

-Preferential trade area
-FTA
-Customs union
-Common market
-Economic union

29
Q

examples of trading blocs

A

-Eu
-ASEAN
-Mercosur
-USMCA

30
Q

+ves of trading blocs to members

A

-cheaper movement of g and s-cheaper raw mat
-greater availability of workers
-larger potential markets-greater sales
-Eurozone- No exchange rate transaction costs

31
Q

-ves of trading blocs for members

A

-Strict trading bloc rules
-cost of joining a trading bloc + regular fees
- increased competition for domestic firms
-free movement of workers-take jobs

32
Q
A

A-Level Business 2 (9 decks)

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