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GCSE Business Studies > The Economy, Tax & Globalisation > Flashcards

The Economy, Tax & Globalisation Flashcards

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1
Q

What is economic growth?

A

Period of rising consumer incomes, demand and output.

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2
Q

What is demand?

A

Total amount of products customers want to buy.

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3
Q

What is a recession?

A

Period of falling consumer incomes, demand and output.

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4
Q

What is unemployment?

A

Number of capable workers out of work.

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5
Q

What is an interest rate?

A
  • Charge made to people lending money.

- Reward for saving money.

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6
Q

What is the Bank of England?

A

The central bank which is responsible for setting interest rates.

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7
Q

What is government spending?

A

Money spent buy the government to provide services.

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8
Q

What is the multiplier effect?

A

Amount by which an increase in spending on a specific item is multiplied in its effect on total spending in the economy.

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9
Q

What is taxation?

A

Charges made by the government to people and businesses.

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10
Q

What is take-home pay?

A

Amount of income a person receives after deductions.

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11
Q

How does the Bank of England change interest rates to control inflation?

A
  • If inflation is too high, interest rates are increased.

- If inflation is too low, interest rates are decreased.

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12
Q

What is income tax?

A

Tax on income.

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13
Q

What are national insurance contributions?

A

Tax on wages/salary.

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14
Q

What is corporation tax?

A

Tax on profits for limited companies.

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15
Q

What is VAT?

A

Tax on spending.

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16
Q

What are excise duties?

A

Special rates on goods such as alcohol and cigarettes.

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17
Q

What are business rates?

A

Tax paid by businesses on property they use.

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18
Q

What is globalisation?

A

Business activities in different countries becoming more connected.

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19
Q

What is outsourcing?

A

A business pays another to do part of its work.

20
Q

What are multi-national companies?

A

Companies that operate in different countries.

21
Q

What is global branding?

A

Product becomes a brand name known and sold worldwide.

22
Q

Give six benefits of globalisation for the UK.

A
  • Consumer choice
  • Lower prices
  • Cheaper labour abroad
  • Larger market
  • Economies of scale
  • More jobs
23
Q

Give three problems of globalisation for the UK.

A
  • Lower profits
  • Lower sales
  • Business closures
24
Q

What happens when the exchange rate falls?

A
  • Exporters benefit increased profits.

- Importers suffer from an increase in the price of imported goods.

25
Q

What are developed countries?

A

Countries with strong economies.

26
Q

What are developed economies?

A

Poorer countries that are starting to grow.

27
Q

What are exports?

A

Goods and services a country sells to other countries.

28
Q

What are imports?

A

Goods and services a country buys from other countries.

29
Q

What is innovation?

A

Developing new products and new ways of making products.

30
Q

What is productivity?

A

The amount each person produces in a given time period.

31
Q

What is value added?

A

Difference between cost of raw materials and value of finished product.

32
Q

What is inward investment?

A

Investment in UK by foreign firms.

33
Q

What is infrastructure?

A

Provision of roads, railways and services.

34
Q

Give three advantages of using the Euro.

A
  • No exchange costs.
  • Reduced uncertainty.
  • Comparing prices.
35
Q

Give five ways the government can help businesses.

A
  • Cut taxes on business profits.
  • Grants for businesses.
  • Cuts in income tax to increase productivity.
  • Education and training.
  • Improving infrastructure.
36
Q

What is the EU?

A

Collection of 27 countries in Europe that trade together.

37
Q

What are tariffs?

A

Taxes on imports making it harder for foreign firms to compete.

38
Q

What are quotas?

A

Limits on amount of goods that can be imported.

39
Q

What is the social charter?

A

Measures to protect workers in the EU from unfair working practices.

40
Q

What is the minimum wage?

A

Guarantees certain wage levels.

41
Q

What is the eurozone?

A

Countries in the EU that use the Euro.

42
Q

What is the euro?

A

Currency used by 15 EU countries.

43
Q

Give five benefits of the EU to business.

A
  • Common standards.
  • Free trade
  • Freedom of workers
  • Freedom of movement of services
  • Grants and subsidies
44
Q

Give three disadvantages of the EU?

A
  • Social charter leads to extra costs.
  • Minimum wage leads to extra costs.
  • Environmental standards have to be upheld.
45
Q

Give two advantages of the eurozone.

A
  • Costs savings from currency exchange.

- Most trade occurs in Europe.

46
Q

Give three disadvantages of the eurozone.

A
  • Equipment has to be changed to the Euro.
  • Re-education has to be undertaken.
  • Currency can’t be changed back.
47
Q

Since you’ve been using these flashcards for free, please consider making a small donation for the hundreds of hours it took to make them.

A

http://bit.ly/21T6H3W

Thank you and good luck!

GCSE Business Studies (14 decks)

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