Globalisation Flashcards
What is globalisation
Give 3 examples
Businesses or other organisations developing on an international scale.
Cotton on, mining companies, Susan
Define MNC
Give 3 examples
Multi national corporation
A company that has its facilities in at least one other country other than its own home country. Nike, Apple, Allianz
What does the business term micro mean?
Give 2 examples
A business that operates on a very small scale. Sole trader and partnership
Define Australian made
Give 3 examples
Products whose ingredients or production mostly originate from Australia. Cooking oil, sauces, bath products.
Define Australian owned
Give 3 examples
All of the ingredients, production and processing is completed in Australia. Wine, fruits and veg, jam
Define diversification
Give 1 example
Spreading the companies assets over a variety of places. A company in Australia moves manufacturing to Asia
Define outsourcing
Give 1 example
Employ other people from other companies or countries to do the work. Australian phone service people are calling from China.
Explain the economies of scale
Give 1 example
When production is increased, the costs are less per item. If you make 1 design it can be used for many buildings.
Define the exchange rate
Give 1 example
The value of one currency for the purpose of converting to another. The conversation from AUD to USD
Define interest rate
Give 1 example
The proportion of a loan that is charged as interest to the borrower. When a company pays back the loan they also pay extra which is the interest.
Define tax haven
Give 1 example
A country or independent area where taxes are levied at a lower rate.
Taxes are cheaper in Bulgaria than they are in Australia.
Define transfer pricing
Give 1 example
The setting of the price for products sold between controlled legal entities within an enterprise.
If a subsidiary sells goods to a parent company.
Explain the triple bottom line and the CSR
Give 1 example
Corporate social responsibility
People, planet, profit
Businesses need to look after the environment and workers as well as making money. Increases the businesses reputation.
Explain ecological sustainability
Give 1 example
Using our natural resources wisely in the short term so that there are some left in the long term.
Cutting down on the use of materials that could be gone in the future.
Give 3 characteristics of an SME?
Give 3 examples
Small Medium Enterprise - up to 200 staff - local - provides innovation Cafe, hairdresser, dentist
Define GFC
Give 1 example
Global financial crisis
A worldwide period of economic difficulty experienced by markets and consumers.
A company is making a lot of something but no one is buying it.
Explain exporting
Give 1 example
Selling your products to a different company or place.
Australia selling products to Asia
Explain importing
Give 1 example
Buying products from other countries or places.
Australia buying products from Asia.
Define subsidiary
A company that is controlled or owned by another company.
Define the term alliances
An agreement between businesses to create a new business.
What is a business licence?
Permits issued by the government that allow individuals or companies to set up in a particular place or area.
Define the term franchise
Give 3 examples
A license to use a companies name, business idea and model in exchange for the money paid to the owner of the company.
Maccas, KFC, dick smith
What does the business term macro mean?
The conditions that exist in the economy as a whole.
Define deregulation
Give 1 example
Removing or reducing state regulations.
Australian companies tend to employ workers from overseas because the regulations on labour costs is significantly low.
