Dransfield Kap 6, 11, 12, 15, 16. Flashcards
- The advantages of International trade?
Choice
Quality
Price
Cant produce it at home
Wider markets
Less enemployment
Wealth for the nation
- Defintition of Exports & Imports?
E= value of good/service that domestic producers provide to foregin consumers, sold to other countries.
I= value of good/service that domestic customers buy from oversea suppliers/other countries.
- Free trade are?
When goods / services can flow freely between countries, with no bariers to trade, as taxes, customs, fees etc.
- Customs Union?
a block of countries establish a common external tariff/tax, with restrictions on imports from outside the customs union.
EX: EU, NAFTA, ASEAN.
- Exchange rates?
Value of currency = the strengt of the demand for it.
- Fixed rates?
are fixed against another currency, maintaned by Gov or Central Bank.
- Floating rates?
Value changes from day to day, diffrent demand & supply for it.
- Devaluation?
The value is justed by GOV. $$ can be overvalued over time. GOV force the exchange rate down, C:B supply increased quantity of currency to the market = reduce pricing. Can make imports more expensive.
- Globalization are?
A part of world systems, incl communication, transportm travel, finance, trade, cooperation etc.
Also, a market for foods/services, capital, people.
- The World Bank does?
Provide assistance to Nations & support them in the process of development. Most countries are members. Nowdays mostly help dev. countries with infra, education, health services, tech support & advicing.
- WTO, World Trade Organisation?
Are financed by its member states, are a permanent body, handle trade disputes between countries. Oversees multilateral trade agreements & trade related aspects of intellectual property right disputes.
- What is Protectionism?
when countries protects their industries by carring out anti-competitive practicies that provides barriers and domestic firms with advantages. EX: taxes.
- Embargo?
complete ban on import of goods from a specific country. Can be used as a carrot in politics, to negotiate etc.
- Product standard regulations?
countrys can require all goods to meet certain tech/other standards. Imprted goods may not meet this, pga produced for ther own or other markets. EX: CE märkning.
- Strategies in business means?
through which a company achive its desired ends/goals. EX: become a market leader, increase sales every year osv.
- Strategy + Suitability?
Strategy + Feasability?
S = Are apporopiate to the external environment.
F = able to be achived within existing reasources of a firm/org.
- PEST analysis?
Analys of wider environment, whish org operates in.
Analys = Political, Economic, Social, Technological. These environments acts as constraint on choices.
- The Economic Environment includes?
external economic factors that impact on org & desicion making. Whether economy is growing, intrest rates, inflation, exchange rates etc that impact the firm.
- SLEPT analysis?
Social, legal, economic, social, technological.
- SMART analysis?
The vision of an org/firm.
Specific
Meaasurable
Agreed
Realistic
Time related.
E:
R:
Quantitative terms:
-Increase market, in 3 y.
-Turnover at 10% / y.
- Competetative advantage?
to do something better than rivals. May be:
providing product service at lower cost, better service, knowledge, quality etc.
- PPF, Production Possibility Frontier?
shows maximum output of 2 goods/services, that can be produced, given the current level of recources avalible & assuming effeciency in production.
- Circular flow of Income?
Shows the flow between firms & households, in relation to production process.
*Firm produce outputs by hiring “factors” of production (workers). They pay for salary (flow of Income).
*Households then spend income (flow of expenditures) on goods serices sold by firm.
- Externalties or spillover effects?
the secondary effects of activity from a firm. Can be both +/- vs benefits or costs.
Social costs = spillover effects = waste, pollution etc.
