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Theme 4 Key Terms Flashcards

1
Q

What does BRICS stand for?

A

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

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2
Q

What is 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

What is an economy?

A

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

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4
Q

What is an emerging economy?

A

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

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5
Q

What are 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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6
Q

What does GDP stand for?

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

What is 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

What is health as a key indicator?

A

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

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9
Q

What is literacy as a key indicator?

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

What does MINTS stand for?

A

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

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11
Q

What are 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

What is Foreign Direct Investment (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

What are imports?

A

Goods and service that are bought into one country from another.

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14
Q

What is specialisation?

A

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

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15
Q

What are transnational companies?

A

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

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16
Q

What is 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

What are 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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18
Q

What is migration?

A

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

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19
Q

What is 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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20
Q

What is trade liberalisation?

A

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

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21
Q

What are domestic subsidies?

A

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

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22
Q

What are import quotas?

A

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

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23
Q
A
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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
Tariffs
A tax on imports to make them more expensive.
26
Trade barriers
Measures designed to restrict trade.
27
ASEAN
The Association of Southeast Asian Nations.
28
EU
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
NAFTA
The North American Free Trade Area. Replaced by the USMCA.
30
Single market
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.
31
Trading bloc
A group of countries that trade freely with reduced or no tariffs and quotas on trade between businesses in these countries.
32
Outsourcing
Moving a business function or department to a specialist external provider which may or may not be overseas.
33
Pull factors
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.
34
Push factors
The conditions that make a business' current location less desirable and may cause it to leave and move elsewhere.
35
Relocating
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.
36
Risk spreading
Limit the various risk that a business faces eg avoiding over dependence upon one market.
37
Saturated market
Where most of the customers who would buy a product already have it, or there is limited opportunity for growth.
38
Disposable income
The amount of money that households have available for spending and saving after taxes have been paid.
39
Ease of doing business
The number and severity of barriers a business faces when entering a new market/country. A high ranking means a business faces fewer barriers.
40
Infrastructure
The systems and services that an economy needs to function effectively, these include transport links and communications.
41
Natural resources
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.
42
Subsidy
A payment to a producer to offset/lower the costs of production.
43
Global merger
When companies from different countries combine assets and operations.
44
Intellectual property
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.
45
Joint venture
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.
46
Patent
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.
47
Global competitiveness
The extent to which a business or a geographical area such as a country, can compete successfully against rivals.
48
Skills shortages
When employers cannot find enough workers with a particular skill.
49
50
What is an ethnocentric/domestic approach?
Where a business approaches the world primarily from the perspective of its own culture. Products and marketing are not adapted.
51
What is a geocentric/mixed approach?
A combination of both ethnocentric and polycentric marketing. Maintain markets and promote the global brand name, but tailor its products to local.
52
What is global localisation or glocalisation?
A marketing strategy that adapts a global product or service to suit differing tastes and preferences in different regions.
53
What is a polycentric/international approach?
Where a business considers each host country to be unique. Businesses adapt their marketing mix to these individual markets to maximise sales.
54
What is cultural diversity?
Recognition that people across the globe have different interests and preferences.
55
What is a global niche market?
Smaller, specialised parts of a global market where there are specific customer needs in more than one country that are not met by the global mass market.
56
What is the balance of payments?
A record of all transactions associated with imports and exports and all international capital movements.
57
What are FDI flows?
The transfer of funds by an MNC to purchase and acquire physical assets such as factories or machines.
58
What is an MNC?
A multi-national company, i.e., a business that operates in more than one country.
59
What is transfer pricing?
A system operated by MNCs to avoid relatively high tax rates through the prices which one subsidiary charges another for components and finished goods.
60
What is child labour?
The employment of children to undertake business activity.
61
What are emissions?
A substance that is produced and sent out into the air that harms the environment.
62
What is exploitation of labour?
When an agent takes advantage of another agent, e.g., an employer abusing an employee.
63
What is supply chain consideration?
The way a business treats and monitors the labour involved in the production of raw materials, components, and services.
64
What is sustainability?
When a business is able to meet present needs without damaging or compromising the needs of the future.
65
What is waste disposal?
The process of getting rid of unwanted materials.
66
What is competition policy?
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.
67
What is tax avoidance?
Using legal methods to reduce the amount of tax that a company pays.
68
What is tax evasion?
Using illegal methods to avoid paying taxes that are owed.
69
What is the WTO?
The World Trade Organisation that supervises world trading arrangements and trade negotiations and promotes the benefits of free trade.

Business (5 decks)

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