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Business studies key terms > Theme 4 > Flashcards

Theme 4 Flashcards

1
Q

BRICS

A

Economies are considered to be: Brazil, Russia, India, China and South
Africa.

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2
Q

Economic
growth

A

An increase in the GDP - value of output of goods and services
produced in an economy over time

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3
Q

Employment
patterns

A

A key indicator of growth looking at unemployment rates, trends, labour
costs and productivity as well as education qualifications and potential
employees

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4
Q

Economy

A

An area/country where goods and services are produced, sold and
bought

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5
Q

Emerging
economy

A

The economies of developing countries where there is rapid growth, but
also significant risk

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6
Q

GDP

A

Gross Domestic Product. Measures the output of goods and services in
an economy over a period of time

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7
Q

HDI

A

Is a composite index focusing on three basic measures of human
development: Life expectancy at birth, mean years of schooling and
expected years of schooling and standard of living, measured by gross
national income per capita

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8
Q

Health

A

A key indicator of the level of development and may include, life
expectancy at birth, mortality, pollution exposure and clean access to
water

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9
Q

Literacy

A

A key indicator of growth. The literacy rate looks at the percentage of
adults that can read and write

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10
Q

MINTS

A

Economies are considered to be Mexico, Indonesia, Nigeria and Turkey

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11
Q

Exports

A

Goods or services that a firm produces in its home market, but sells in a
foreign market

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12
Q

FDI

A

Foreign Direct Investment, when a business invests by setting up
operations or buying assets in businesses in another country

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13
Q

Imports

A

Goods and service that are bought into one country from another

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14
Q

Specialisation

A

When an economy or a business concentrate on a specific range of
products or services.

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15
Q

Foreign
Direct
Investment
(FDI)

A

When a business with head office in one country, sets up factories,
offices etc in another country

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16
Q

Globalisation

A

A process by which economies and cultures have been drawn deeper
together and have become more interconnected through networks of
trade and the rapid spread of technology

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17
Q

Structural
change

A

Where some businesses grow while others will shrink or close down e.g.
those in primary, secondary and tertiary sectors

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18
Q

International
trade barriers

A

A regulation or policy that restricts international trade, for example:
tariffs, quotas, customs duties, rules and regulations

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19
Q

Migration

A

The movement of people from one country to another to seek
employment or a better life

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20
Q

Trade
liberalisation

A

The reduction, and sometimes removal, of trade barriers between
countries

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21
Q

Transnationa
l companies

A

Companies that own or control production or service facilities outside the
country in which they are based

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22
Q

Domestic
subsidies

A

Financial support given to a domestic producer to help compete with
overseas firms

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23
Q

Import
quotas

A

A physical limit on the quantity of imports allowed into a country

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24
Q

Protectionism

A

Policies used by a government to protect domestic businesses by
making foreign owned products less attractive. Examples include tariffs,
quotas, subsidies and regulation

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25
Q

Tariffs

A

A tax on imports to make them more expensive

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26
Q

Trade
barriers

A

Measures designed to restrict trade

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27
Q

NAFTA

A

The North American Free Trade Area. Replaced by the USMCA.

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27
Q

ASEAN

A

The Association of Southeast Asian Nations

28
Q

EU

A

The European Union, the most powerful trading bloc in the world. A
single market that guarantees the free movement of people, goods,
services and capital through member states

29
Q

Single
market

A

A market where almost all trade barriers between member have been
removed and common laws or policies aim to make the movement of
goods, services, capital and labour between countries easy

30
Q

Trading bloc

A

A group of countries that trade freely with reduced or no tariffs and
quotas on trade between businesses in these countries

31
Q

Outsourcing

A

Moving a business function or department to a specialist external
provider which may or may not be overseas

32
Q

Pull factors

A

The conditions that exist elsewhere that appear to be more
advantageous and may cause a business to move to those areas to take
advantage of them

33
Q

Push factors

A

The conditions that make a business’ current location less desirable and
may cause it to leave and move elsewhere

34
Q

Relocating

A

When a business moves to a new location. This can improve the use of
premises and can lead to lower costs, such as lower rent

35
Q

Risk
spreading

A

Limit the various risk that a business faces eg avoiding over dependence
upon one market

36
Q

Saturated
market

A

Where most of the customers who would buy a product already have it,
or there is limited opportunity for growth

37
Q

Disposable
income

A

The amount of money that households have available for spending and
saving after taxes have been paid

38
Q

Ease of
doing
business

A

The number and severity of barriers a business faces when entering a
new market/country. A high ranking means a business faces fewer
barriers. Such barriers include dealing with/amount of government
regulations, access to energy sources, tax regimes, employment law
and enforcing contracts

39
Q

Infrastructure

A

The systems and services that an economy needs to function effectively,
these include transport links and communications

40
Q

Natural
resources

A

Materials or substances occurring in nature which can be exploited for
economic gain e.g. raw materials like iron ore, coal or large forests or
lakes

41
Q

Subsidy

A

A payment to a producer to offset/lower the costs of production

42
Q

Global
merger

A

When companies from different countries combine assets and
operations

43
Q

Intellectual
property

A

A produce that is a creation of the mind, such as invention, that the law
protects from unauthorised use by others. It includes patents, copyrights
and trademarks

44
Q

Joint venture

A

When two or more businesses come together for a specific project. It is
not a formal takeover or merger, and the businesses remain
independent of each other

45
Q

Patent

A

Legal rights to a monopoly on a new product or process. The innovator
applies to the patent office. Businesses cannot legally copy the patented
product without permission

46
Q

Global
competitiven
ess

A

The extent to which a business or a geographical area such as a
country, can compete successfully against rivals

47
Q

Skills
shortages

A

When employers cannot find enough workers with a particular skill

48
Q

Ethnocentric/
domestic
approach

A

Where a business approaches the world primarily from the perspective
of its own culture. Products and marketing are not adapted

49
Q

Geocentric/m
ixed
approach

A

A combination of both Ethnocentric and Polycentric marketing. Maintain
and promote the global brand name, but tailor its products to local
markets

49
Q

Global
localisation
or
glocalisation

A

A marketing strategy that adapts a global product or service to suit
differing tastes and preferences in different regions e.g. ‘think global, act
local’

50
Q

Polycentric/I
nternational
approaches

A

Where a business considers each host country to be unique. Businesses
adapts their marketing mix to these individual markets to maximise sales

51
Q

Cultural
diversity

A

Recognition that people across the globe have different interests and
values

52
Q

Global niche
market

A

Smaller, specialised parts of a global market where there are specific
customer needs in more than one country are not met by the global
mass market

53
Q

Balance of
payments

A

A record of all transactions associated with imports and exports and all
international capital movements

54
Q

FDI flows

A

The transfer of funds by an MNC to purchase and acquire physical
assets such as factories or machines

55
Q

MNC

A

A multi national company i.e. a business that operates in more than one
country

56
Q

Transfer
pricing

A

A system operated by MNC’s. It is an attempt to avoid relatively high tax
rates through the prices which one subsidiary charges another for
components and finished goods

57
Q

Child labour

A

The employment of children to undertake business activity

57
Q

Emissions

A

A substance that is produced and sent out into the air that harms the
environment

58
Q

Exploitation
of labour

A

When an agent takes advantage of another agent e.g.an employer
abusing an employee

59
Q

Supply chain
consideration
s

A

The way a business treats and monitors the labour involved in the
production of raw materials, components and services

60
Q

Sustainability

A

When a business is able to meet present needs without damaging or
compromising the needs of the future

61
Q

Waste
disposal

A

The process of getting rid of unwanted materials

62
Q

Competition
policy

A

Government policy that exists to promote competition and ensure that
firms don’t abuse their market power, do not attempt to fix prices or use
pricing strategies to drive out competition

63
Q

Tax
avoidance

A

Using legal methods to reduce the amount of tax that a company pays

64
Q

Tax evasion

A

Using illegal methods to avoid paying taxes that are owed

65
Q

WTO

A

The World Trade Organisation that supervises world trading
arrangements and trade negotiations and promotes the benefits of free
trade

Business studies key terms (4 decks)

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