Business theme 4 definition’s Flashcards
Administrative barriers
The procedure that a company must go through when shipping their product to another country
Barriers to entry
How easy it is for firms to enter the market
Common market
Agreement between 2 or more countries removing a trade barrier
Comparative Advantage
A country can produce more of a good at a lower opportunity cost than another country
Competition Policy
Rules that ensure business compete fairly with each other
Competitive advantage
A condition that allows a business to generate more sales or more profitable than rivals
Cost competitiveness
When a business has lower costs than rivals therefore charge lower prices
Cost Leadership
Lowest production costs compared to rivals who make similar quality products
Cultural Audit
Reviewing the company’s values and their aim for what they want their values to be
Customs Union
Group of countries that have 1 tariff or trade barrier between them
Differentiation
Selling a product with unique attributes or features
Direct Action
When a group tries to implement or stop a policy being implemented by someone else
Disposable Income
Money consumers have left over after taxes/expenses have been paid
Division of Labour
When the process of producing a product is split up and individuals only work on one specific task
Dumping
When a good is exported(dumped) ina different country below its market value
E.g dead stock a business can’t sell
Economic and Monetary Union
All the countries that have adopted a free trade and monetary agreement in the EU
Economic Growth
Increase in GDP,Supply and demand, wealth
Economic risk
EConomic risks involved with investing in a business e.g Exchange rates
Economic Union
Agreement between 2 or more countries to allow goods over their borders freely
Embargo
A ban on trade with a particular country
Emerging Economy
Rapid growth in economy, infrastructure, internet , tech
Ethnocentrism
Global marketing approach that keep marketing strategy same in all countries
Exchange rates
The value of one currency in terms of another currency
Exports
Products made in omen country are shipped to sell in another country
FDI
One country investing in another country
Franchising
Method of distributing products or services involving a franchisor who uses brand name.
Free trade area
A grouping of countries within which
Free trade area
A grouping of countries within which
