Theme 4 Global Business

Question 1

Economic growth

Answer 1

increase in the real value of goods and services produced

Question 2

Globalisation

Answer 2

the increase in how interconnected,interdependent and integrated the world is

Question 3

BRICS

Answer 3

brazil,russia,india,china and south africa

Question 4

MINTS

Answer 4

mexico,indonesia,nigeria,turkey and south korea

Question 5

GDP

Answer 5

measure of all the goods and services produced in a country divided by the number of people in the country

Question 6

Importing

Answer 6

buying products from foreign countries

Question 7

Exporting

Answer 7

selling products and services to foreign countries

Question 8

Comparative advantage

Answer 8

ability for a country to produce a product or service more efficiently then other countrys

Question 9

Competitive advantage

Answer 9

ability for a business to outperform another business

Question 10

FDI

Answer 10

an investment made in one country into another e.g setting up operations in another country

Question 11

Emerging markets

Answer 11

a market of a developing nation that is becoming more engaged with global markets as it grows

Question 12

Economic interdependence

Answer 12

mutual dependence of the participants in an economic system who trade in order to obtain the products they cannot produce efficiently for themselves

Question 13

Protectionism

Answer 13

protecting domestic businesses against foreign competition and limiting the number of imports into the country

Question 14

Trade liberalisation

Answer 14

the removal or reduction of restrictions or barriers on the free exchange of goods between nations

Question 15

Trading blocs

Answer 15

patnerships and agreements between nations to allow free trade.

Question 16

Offshoring

Answer 16

the relocation of parts of the business processes or services to another country with lower production costs

Question 17

Reshoring

Answer 17

when a business moves department back to its country of origin

Question 18

Outsourcing

Answer 18

when a business contract out some activities to other businesses rather than doing them in-house.

Question 19

Push factors

Answer 19

negative factors in the domestic market that motivates a business to look at business opportunities abroad

Question 20

Pull factors

Answer 20

positive factors in overseas markets which make it attractive for a business to trade abroad

Question 21

Ethnocentric (domestic) approach

Answer 21

A business making little or no attempt to adapt their products for the local market

Question 22

Polycentric (international) approach

Answer 22

A business adapting their products to suit local markets needs and wants

Question 23

MNC’S

Answer 23

Mulitnational cooperations business that operates in more than one country at the same time

Question 24

Transfer pricing

Answer 24

a legal method where an MNC will ensure it is selling its product through a country with the lowest tax levels even if introduced in a different country

Question 25

LEDC’S

Answer 25

Less economically developed countries