Key Terms Flashcards
Emerging economy
An economy in the process of rapid growth and industrialisation
Human Development Index
A composite index that attempts a broader measure of economic development
Key measures:
- longevity
- basic education
- minimal income
GDP per capita
Measures the value of GDP per person in a country
International trade
The exchange of products (goods and services)
Exports
Goods and services produced by one country are sold to another country
FDI
Investment from one country into another that involves establishing operations or acquiring tangible assets, including stakes in other businesses
Globalisation
A process in which economies have become increasingly integrated and interdependent
Open trade
An economic policy of not discriminating against imports from and exports to other countries
Protectionism
Involves any attempt by a country to impose restrictions on trade in goods and services
Import quotas
A tax or duty that raises the price of imported products and causes a reduction in domestic demand and expansion in domestic supply
Tariffs
Volume limits on the level of imports allowed or a limit to the value of imports permitted into a country in a given time period
Subsidies
A payment to encourage domestic production by lowering their costs
Trading bloc
Groups of countries in specific regions that manage and promote trade activities
Push factor
Where businesses feel they have to expand internationally because of domestic/ home market issues
Pull factors
Where businesses are attracted by compelling opportunities to grow by expanding internationally
Disposable income
Income that consumers have left to spend after tax
Joint venture
Separate business entity created by two or more parties, involving shared ownership, returns and risks
Merger
Combination of two previously separate firms which is achieved by forming a completely new firm into which the two original businesses are intergrated
Glocalisation
Describes a product or service that is developed and sold globally, but is also adapted to meet the needs and wants of customers in a local market
Ethnocentric
Assumes that work works in home markets will also work in international markets
Geocentric
Recognised differences in national markets and
Polycentric
Recognises that every national market requires a different marketing mix
- products designed specifically to meet local needs
Cultural diversity
Recognition that groups of people across the globe have different interests and values
Global nice market
A market where customers in many countries have specific needs and wants that are not satisfied by mass market products or services
