Key Terms Flashcards

1
Q

Emerging economy

A

An economy in the process of rapid growth and industrialisation

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2
Q

Human Development Index

A

A composite index that attempts a broader measure of economic development

Key measures:

  • longevity
  • basic education
  • minimal income
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3
Q

GDP per capita

A

Measures the value of GDP per person in a country

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4
Q

International trade

A

The exchange of products (goods and services)

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5
Q

Exports

A

Goods and services produced by one country are sold to another country

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6
Q

FDI

A

Investment from one country into another that involves establishing operations or acquiring tangible assets, including stakes in other businesses

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7
Q

Globalisation

A

A process in which economies have become increasingly integrated and interdependent

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8
Q

Open trade

A

An economic policy of not discriminating against imports from and exports to other countries

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9
Q

Protectionism

A

Involves any attempt by a country to impose restrictions on trade in goods and services

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10
Q

Import quotas

A

A tax or duty that raises the price of imported products and causes a reduction in domestic demand and expansion in domestic supply

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11
Q

Tariffs

A

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

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12
Q

Subsidies

A

A payment to encourage domestic production by lowering their costs

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13
Q

Trading bloc

A

Groups of countries in specific regions that manage and promote trade activities

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14
Q

Push factor

A

Where businesses feel they have to expand internationally because of domestic/ home market issues

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15
Q

Pull factors

A

Where businesses are attracted by compelling opportunities to grow by expanding internationally

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16
Q

Disposable income

A

Income that consumers have left to spend after tax

17
Q

Joint venture

A

Separate business entity created by two or more parties, involving shared ownership, returns and risks

18
Q

Merger

A

Combination of two previously separate firms which is achieved by forming a completely new firm into which the two original businesses are intergrated

19
Q

Glocalisation

A

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

20
Q

Ethnocentric

A

Assumes that work works in home markets will also work in international markets

21
Q

Geocentric

A

Recognised differences in national markets and

22
Q

Polycentric

A

Recognises that every national market requires a different marketing mix
- products designed specifically to meet local needs

23
Q

Cultural diversity

A

Recognition that groups of people across the globe have different interests and values

24
Q

Global nice market

A

A market where customers in many countries have specific needs and wants that are not satisfied by mass market products or services

25
Q

Multinational companies

A

A business that has operations in more than one country

26
Q

Ethics

A

Moral guidelines which govern acceptable behaviour

27
Q

Ethical behaviour

A

Doing what is morally right