Business activity 3 Flashcards
Surplus
Amount of something that is more than what is needed
Exports
Goods and services sold overseas
Imports
Goods and services bought from overseas
Visible trade
Trade in physical goods
Invisible trade
Trade in services
Balance in trade
Difference between visible exports and visible imports
Transactions
Business deals or actions such as buying or selling something
Exchange rate
Value of one currency in terms of another
Commission
Extra amount of money that is paid to a person or organization according to the value of the goods they have sold or the services they have provided
Fiscal policy
Using changes in taxation and government expenditure to manage the economy
Lay off
Make employees redundant
Social security payments
Money taken by the British government from people wages to pay for the system of payments to the people who are unemployed or ill
Anti competitive practice
Attempts by firms to prevent or restrict competition
Barriers to entry
Restrictions that mean it is difficult for new firms to enter the market
Merger
Two or more businesses joining together to form one new firm
Protectionism.
Use of trade barriers to protect domestic producers
Infant industries
New industries that are yet to be established
Dumping
Where a business sells goods in another country often below costs
Trade barriers
Measures designed to restrict trade
Quota
Physical limit on the quantity on the quantity of imports allowed in a country
Subsidy
Financial support given to a domestic producer to help compete with overseas firms
Interest
Price of borrowed money
Monetary policy
Using changes in interest rates and the money supply to manage the economy
Budget
And official statement that a government makes about how much it intends to spend and what the rates of taxes will be for the next year or six months
