pap 2 Flashcards
what is globalisation
The world becoming interconnected through trade
Leads to import
and exports
Disadvantages and advantages of globalisation
Disadvantage of Imports
More competion
Advantages of exports
You can sell abroad and may lead to higher revenue because of this
Makes you a multi national company
What are considerations for MNCs
Tariffs - Higher prices for selling in another country higher prices mean less demand
Trade Blocs
Gives u acess to the other countries members without any tariffs
What is the design mix-
Aesthetics Function, cost
What are pressure groups
Pressure groups are a group of people trying to influence a government or a business
Sustainability vs profit trade off
Sometimes by being more sustainable
renewable recourses may lead to higher costs meaning profits fall/
More sustainable makes less profit
Ethics vs profit trade off
More ethical means that your business is more likely to cost more to produce the items and even the items price which could lead to less profit
Just in time
Reduce waste by producing goods and services only when there needed
Pros and cons of Just in time
Pros
Improve efficency
Save storage costs
Cons
Need to have a good relationsihp with your supplier
Requires good demand forcasting
What is Logistics
Logistics is the process of planning and organising the flow of goods and services from the suppliers to the consumer shops
What are price strategies
Price skimming
Competitive Pricing
What is job production
Job production is a single product for a single customer
What is flow production
Flow production is a product that is continuously being made lead to more competitive prices but could lead to worker disatisfaction
