Theme 4 Flashcards
emerging economies
countries with growing but low to middle average income per person.
GDP per capita
the total value of output in an economy at a certain period of time. this is calculated by: national income/population.
human development index (HDI)
a measure of economic growth that measures economic progress through the achievement of people rather than simply through income and growth figures.
international trade
the exchange of goods and services between countries.
FDI
Investment made by a foreign company in the economy of another country.
globalisation
increased integration and interdependence of international economies leading to a world market.
trade barriers
government actions that limit the free movement of goods and services between countries.
trade liberalisation
process of removing barriers to trade to encourage the free movement of goods and services between countries.
protectionism
policies imposed by governments to restrict free movement of goods between countries.
tariffs
taxes placed on imported goods that are not applied to domestic goods.
quotas
the physical limit on the volume of imports entering a country.
embargoes
a total ban on imported products.
subsidies
government payments to domestic firms to reduce production costs and improve competitiveness.
trading blocs
economic units formed when the governments of a group of countries agree to trade together freely (e.g. with no trade barriers)
the EU
an economic and political partnership between 28 european countries to create economic cooperation, peace stability and prosperity.
saturated market
when nearly all potential customers already have the product a business sells, or a close substitute.
off-shoring
when a business relocates production to another country.
outsourcing
when a business uses the services of another organisation (e.g. a production plant)
disposable income
the amount of income an individual has available to spend after income tax and other statutory payments.
infrastructure
physical systems that a country or business require to operate effectively (e.g. transport, communication, utilities)
global merger
when two or more businesses join together beyond the boundaries of a specific country.
joint ventures
when two or more businesses agree to act collectively to set up a new business venture.
global competitiveness
the ability of a business to compete in international markets in order to become a leader in a given industry.
global market
a market that targets all of the world’s economies rather than individual countries.
global marketing strategy
the adaption of a marketing strategy to target all markets on a worldwide scale.
glocalisation
the adaption of a global marketing strategy in order to meet the requirements of local geographic markets.
ethnocentric
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)
polycentric
a marketing approach. the promotion of a product is based on beliefs of the nation the business is operating in.
geocentric
a marketing approach (also known as mixed)
cultural diversity
a range of different people within a society.
global niche market
subcultures in world society that share common interests
cultural factors
the lifestyle, customs and values of a group of people in different countries or from different ethnic groups
cultural differences
the differences that occur as a result of different types of people having different lifestyles, customers and values
MNCs (multinational corporation)
a business that, although operated from one country, has facilities and assets in more than one country.
ethics
morality in decision making, inferring doing what is ‘right’
stakeholder conflict
this occurs when there is a conflict of interest between different stakeholders such as employees and shareholders
employee legislation
legislation that seeks to look after the rights of workers
environmental protection
legislation to protect natural resources - especially as MNCs exploit these with little concern for the environment in which they operate
