buiness Flashcards
define GDP
total value of goods and service produced in a country annually
indicators of economic growth
literacy skills
The life expectancy
The human development index
what is import and how is it beneficial
imports are products which come from overseas
they are usually cheaper than domestic products
increases the products and services available in a country
what are exports
products sold overseas
money flowing into the domestic economy
a business can increases market share and awareness
specialisation
the process of becoming an expect in a particular field
specialisation advantages
improves the efficiency of a business as workers become more skilled in the area and tend to work faster producing high quality products
A buiness may be able to reduce unit cost and charge lower prices to increase deamnd or be competitive or they can charge premium prices due to the quality being produced both which would result in generating high profit
specialisation disadvantages
a country or business man become too dependent on that particular good or service and the demand or market for that may decrease and wouldnt have other sources of revenue to make up for it
define FDI
when a business in one country invests in a business in another country
horizontal FDI and vertical FDI
horizontal FDI is when a buiness sets up according to the same process in the supply chain
FDI advantages
can gain entry into new markets
may allow buiness to use the specialisation of the country
may allow cheaper labour and work ethics
investing in foreign businesses can help a business to overcome international trade barriers
courses of globalisation to increase
political factors
migration
cheaper transport
protectionism
is when a government protect domestic business and services from foreign competition
