Business structure Flashcards
Free Trade
No restriction or trade barriers exist that might prevent or limit trade between countries.
Tariff
Taxes imposed on imported goods to make them more expensive than they would otherwise be.
Quota
Limits on the physical quantity or value of certain goods that may be imported.
Voluntary export limits
An exporting country agrees to limit the quantity of certain goods sold to one country.
Protectionism
Using barriers to free trade to protect a country’s own domestic industries.
Globalisation
The increasing freedom of movement of goods, capital and people around the world
Multinational business
Business organisation that has its headquarters in one country, but with operating branches, factories and assembly plants in other countries.
Reasons to become a multinational?
Closer to main markets
lower costs production
Avoid important restrictions
Access to local natural resources
Privatisation
Selling a state-owned and controlled business organisations to investors in the private sector
