Globalisation Flashcards
Globalisation
The trend for markets to become worldwide in scope
Multinational company
A company that provides goods and services in more than one country.
International trade
The selling of goods and services across national borders
Exports
Goods and services produced in one country and sold in another
Tariff
A tax on foreign goods imported into a country
Growth
Occurs when a business sells increased quantities of its products. Or when a business becomes able to make more and bigger decisions through increased funds or sales
Economies of scale
Occur when the cost of producing a single unit falls as output increases.
Diseconomies of scale
Occurs as the cost of producing a single unit rises as output increases.
Inward investment
Occurs when governments, businesses or individuals invest capital into another country, for example, building more factories or buying companies.
Takeover
Occurs when one business buys control over another one.
Product design
Translates the needs of customers, or the inventiveness of entrepreneurs into a saleable product.
Quality
The extent to which a customer is satisfied with a product.
Price
The amount a business asks a customer to buy for a single, or multiple products
Exchange rate
The price of one currency expressed in terms of another
Imports
Goods and services purchased from overseas customers in the domestic market
