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Global Business > Growing Economies > Flashcards

Growing Economies Flashcards

1
Q

Define Globalisation

A

The process that enables markets to operate internationally. It requires the free movement of products resources and finance so that businesses can sell in a world wide market.

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2
Q

Define PESTEL

A 
Political
Economical
Social
Technological
Environmental
Legal
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3
Q

When would you use PESTEL?

A

When assesing external factors of a business

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4
Q

Define economy

A

The trade of goods and services in a country

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5
Q

Define emerging economy

A

When a country which isn’t wealthy has an economy which is still developing

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6
Q

What are the BRICS countries?

A 
Brazil
Russia
India
China
South Africa
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7
Q

What are the MINT countries?

A

Mexico
Indonesia
Nigeria
Turkey

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8
Q

What is the formula for economic growth?

A

Change in GDP

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9
Q

Name the indicators of economic growth?

A

Trade opportunities for businesses

Employment patterns

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10
Q

Why are trade opportunities for businesses seen as econ growth?

A

When there is a trade opportunity businesses can move into that sector as it is profitable

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11
Q

What are some changes in employment patterns?

A

More women in work
More migration
More home working
Sector change e.g. primary to secondary

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12
Q

What are some indicators of growth?

A

GDP
GDP Per Capita
GDP Per Capita at PPP
HDI

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13
Q

Define GDP

A

Gross Domestic Product: The total value of goods and services produced in an economy in 1 year

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14
Q

What is GDP Per Capita?

A

The GDP divided by the population. GDP per head

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15
Q

What is GDP Per Capita at PPP?

A

Purchasing power parity: A measure of real growth that uses the price of purchasing a standardised basket of goods and services in order to compare prices around economies.

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16
Q

Define first mover advantage

A

Invention, when you come up with a concept first

17
Q

Define international trade

A

The exchange of capital, goods and services across international borders.

Exporting and Importing

18
Q

Define export

A

A good produced here then consumed overseas

19
Q

Define import

A

A good produced overseas then consumed here

20
Q

Define specilization

A

Being able to perform a specific job/task at a high level

21
Q

Define comparitive advantage

A

An economies ability to produce goods/services at a lower opportunity cost than their trade partners. International

22
Q

Define competitive advantage

A

A firms ability to produce a good/service at a lower cost than its competitors

23
Q

What are some benefits of specilisation?

A

Increases productivity
Improves efficiency
Jobs become easier
Sustain comparitive advantage

24
Q

What are some drawbacks of specilization?

A 
Limits focus to only one task
Limits output as it takes longer
Requires training which is expensive
Limits innovation
Inability to be dynamic
25
Q

Define FDI

A

Foreign Direct Investment- When an investor from another country invests into a business which they gain (an amount) of control over

26
Q

Define Inward cross border investment

A

Recieving investment from overseas

27
Q

Define outward cross border investment

A

Build or buy facilities overseas

28
Q

Define greenfield cross border investment

A

Vertical- Build a completely new business overseas

29
Q

Define brownfield cross border investment

A

Horizontal- Buy an existing business/purchase or lease facilities. E.G. EE took over T Mobile

30
Q

What are benefits of Greenfield?

A

100% ownership
Economies of scale
Creates jobs

31
Q

What are some disadvantages of greenfield investment?

A

High risk
High costs
Govt regulations

32
Q

What are some advantages of brownfield investment?

A

Less risk as already established business
Eliminate competition
Less start up costs

33
Q

What are some disadvantages of brownfield investment?

A

Facility or infrastructure may need upgrading

Locational constraints

34
Q

FDI benefits for the host country

A 
Brings new jobs
Brings new tech
Increases exports
Better infrastructure
More tax revenue
35
Q

Define Tariff

A

Adding a tax to a good that has been imported

36
Q

Define import quota

A

A restriction to the amount of goods that can be imported

Global Business (1 decks)

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