feb defintion test unit 7 Flashcards
EMERGING MARKET
is a country whose GDP is growing faster than average and has the potential to grow further in terms of productive capacity, market opportunities and competitive advantage. E.g. India
MIGRATION
the movement of people from one place to another. Immigration is people moving into the nation and emigration is people moving out of the nation. The reasons for migration can be economic, social, political or environmental.
MONETARY POLICY
the control of interest rates and money supply in order to influence the level of spending in an economy.
BARRIER TO ENTRY
factors that make it difficult or impossible to enter an industry. E.g. economies of scale.
EXCHANGE RATE APPRECIATION
A rise value of the currency compared to other currencies
INFLATION
a sustained increase in the average prices of goods and services. Inflation also represents therefore a fall in the purchasing power of money.
EXPANSIONARY ECONOMIC POLICY
Any government action that stimulates the increase in GDP. E.g. supply-side policies, cutting taxes or cutting interest rates.
FISCAL POLICY
the use of taxation and government expenditure to influence the economy. The changes to fiscal policy are usually announced by the Chancellor in the budget.
COST PUSH INFLATION
A general rise in prices caused by an increase in costs
BUSINESS CYCLE
a regular fluctuation of income and output (GDP) within an economy over time. There are 4 mains phases of the business cycle: boom, recession, slump and recovery.
BUDGET DEFICIT
occurs when taxation receipts are less than government spending. Low taxes and high government spending help the economy expand and boosts overall demand for firm’s products.
GLOBALISATION
the growing trend towards worldwide markets in products, services, capital and labour unrestricted by barriers. It is the increasing integration of the world’s local regional and national economies into a single international market.
OLIGOPOLY
a market form wherein an industry is dominated by a small number of businesses who are inter-dependent. These businesses may collude or compete.
PRESSURE GROUP
an organisation whose members have a common cause for which they seek to influence political or corporate decision makers to achieve a declared objective. E.g. Stop Huntingdon Animal Cruelty
PROTECTIONISM
an attempt by government to impose restrictions on trade in goods and services using policies like tariffs and quotas.
QUANTITATIVE EASING
increasing of money supply by electronic money creation. It often involves governments using this money to buy government bonds to reduce long term interest rates and encourage private banks to lend more.
QUOTA
a physical limit placed on the imports of certain products
REGULATOR
a government empowered organisation which aims to enforce the law. E.g. Environment Agency
SELF-REGULATION
the process whereby an organization monitors its own observance of legal, ethical, or safety standards, rather than have an outside, independent agency such as a third party entity monitor and enforce those standards
SHAREHOLDER CONCEPT
the view that businesses exist only to meet the need of shareholders. This is best done by maximising profits and thus maximising shareholder value which combines rewards from increased share price and increased dividends
SHORT TERMISM
the pressure to deliver quick or short term results to the likely harm of longer term goals and development
STAKEHOLDER CONCEPT
the view that businesses should aim to look after anyone impacted by the business as a fulfilment of their duties. This may help them attain their social and ethical goals but some believe that long-run profit is best served by looking after the stakeholders.
TARIFF
is a tax imposed on imported products
URBANISATION
the movement of people from the countryside to lives in towns or cities.
