Theme 4

Question 1

emerging economies

Answer 1

countries with growing but low to middle average income per person.

Question 2

GDP per capita

Answer 2

the total value of output in an economy at a certain period of time. this is calculated by: national income/population.

Question 3

human development index (HDI)

Answer 3

a measure of economic growth that measures economic progress through the achievement of people rather than simply through income and growth figures.

Question 4

international trade

Answer 4

the exchange of goods and services between countries.

Question 5

FDI

Answer 5

Investment made by a foreign company in the economy of another country.

Question 6

globalisation

Answer 6

increased integration and interdependence of international economies leading to a world market.

Question 7

trade barriers

Answer 7

government actions that limit the free movement of goods and services between countries.

Question 8

trade liberalisation

Answer 8

process of removing barriers to trade to encourage the free movement of goods and services between countries.

Question 9

protectionism

Answer 9

policies imposed by governments to restrict free movement of goods between countries.

Question 10

tariffs

Answer 10

taxes placed on imported goods that are not applied to domestic goods.

Question 11

quotas

Answer 11

the physical limit on the volume of imports entering a country.

Question 12

embargoes

Answer 12

a total ban on imported products.

Question 13

subsidies

Answer 13

government payments to domestic firms to reduce production costs and improve competitiveness.

Question 14

trading blocs

Answer 14

economic units formed when the governments of a group of countries agree to trade together freely (e.g. with no trade barriers)

Question 15

the EU

Answer 15

an economic and political partnership between 28 european countries to create economic cooperation, peace stability and prosperity.

Question 16

saturated market

Answer 16

when nearly all potential customers already have the product a business sells, or a close substitute.

Question 17

off-shoring

Answer 17

when a business relocates production to another country.

Question 18

outsourcing

Answer 18

when a business uses the services of another organisation (e.g. a production plant)

Question 19

disposable income

Answer 19

the amount of income an individual has available to spend after income tax and other statutory payments.

Question 20

infrastructure

Answer 20

physical systems that a country or business require to operate effectively (e.g. transport, communication, utilities)

Question 21

global merger

Answer 21

when two or more businesses join together beyond the boundaries of a specific country.

Question 22

joint ventures

Answer 22

when two or more businesses agree to act collectively to set up a new business venture.

Question 23

global competitiveness

Answer 23

the ability of a business to compete in international markets in order to become a leader in a given industry.

Question 24

global market

Answer 24

a market that targets all of the world’s economies rather than individual countries.

Question 25

global marketing strategy

Answer 25

the adaption of a marketing strategy to target all markets on a worldwide scale.

Question 26

glocalisation

Answer 26

the adaption of a global marketing strategy in order to meet the requirements of local geographic markets.

Question 27

ethnocentric

Answer 27

a marketing approach. the promotion of the product is made based on the home nation and is presented to the host nation (also known as domestic)

Question 28

polycentric

Answer 28

a marketing approach. the promotion of a product is based on beliefs of the nation the business is operating in.

Question 29

geocentric

Answer 29

a marketing approach (also known as mixed)

Question 30

cultural diversity

Answer 30

a range of different people within a society.

Question 31

global niche market

Answer 31

subcultures in world society that share common interests

Question 32

cultural factors

Answer 32

the lifestyle, customs and values of a group of people in different countries or from different ethnic groups

Question 33

cultural differences

Answer 33

the differences that occur as a result of different types of people having different lifestyles, customers and values

Question 34

MNCs (multinational corporation)

Answer 34

a business that, although operated from one country, has facilities and assets in more than one country.

Question 35

ethics

Answer 35

morality in decision making, inferring doing what is ‘right’

Question 36

stakeholder conflict

Answer 36

this occurs when there is a conflict of interest between different stakeholders such as employees and shareholders

Question 37

employee legislation

Answer 37

legislation that seeks to look after the rights of workers

Question 38

environmental protection

Answer 38

legislation to protect natural resources - especially as MNCs exploit these with little concern for the environment in which they operate