Theme 2, half term 1 key terms Flashcards
Future revision
Globalisation
Businesses who operate on an international scale
Import
Buying from other countries
Export
Selling to other countries
Tariff
A tax imposed on imports and exports
Quota
A set amount of how much of a foreign product can be sold in that country.
Trading bloc
A group of countries who band together to determine what protectionist measures they will use against other countries.
Protectionist measures
Barriers to trade where a country protects its domestic businesses
Domestic market
The businesses operating in their own country
Internal growth
A business expands its activities by itself
External growth
When 2 or more businesses join to form a new business. (Could be willing or hostile)
Hostile takeover
The business takes over 50% of the other business’ shares
Horizontal integration
Buying or merging with a business that is on your level of development of the product (primary,secondary , tertiary) to increase your market share there.
Vertical integration
Buying or merging with a company that is part of one of the different development stages of your product.
Merger
2 or more businesses willingly decide to become one business to grow itself
Overdraft
The bank allows your balance to go under £0 on your account.
Trade credit
Suppliers allow the business to pay for the goods later than they were bought.
Venture capital
This is where outside investors pay money to your business.
Share capital
This is the business selling a part of itself for money
Loans
Borrow money from the bank and pay back with interest.
Crowdfunding
Asking others to invest in your business and they get rewards for investment. E.g discounts at the business.
