Theme 4 Key Words Flashcards
Economies of scale?
As output increases cost per unit decreases
Market share?
MNC?
Multinational company
Stakeholder?
Someone who is effected by the business.
Globalisation?
The increasing integration and cooperation between countries and growth of international trade.
Protectionism?
Protecting domestic businesses and home industries
GDP?
A measure of all goods and services in a country divided by the number of people in a country
HDI
Combines a range of economic statistics for country
Importing?
Buying products for resell  are importing raw materials and components for the production of goods that are imported from a foreign country
Exporting
Selling products and services direct to foreign countrys 
Trade bloc?
A type of intergovernmental agreement where barriers to trade are reduced or eliminated amongst the member states
Diversification? (Ansoffs matrix)
New product in new market
Market penetration (ansoffs matrix)
A strategy to boost sales of current products in current market
Market development? (Ansoffs)
Takes existing products into new segments
Product development (Ansoffs)
Develop new products for existing customers
Outsourcing?
Moving a business function To a specialist external provider in a different country
Offshoring?
Moving manufacturing or service industries to a part of the world with lower production costs
What is a global merger?
 an agreement between two companies from different countries to join forces permanently and make a new company 
Joint venture?
An agreement between two companies to work together on a specific project for a specific time
Ethnocentric approach?
No attempt to adapt approach
Geocentric market
Slight adjustments to suit each markets
Poly centric approach?
Complete overhaul of the project and marketing to suit a particular market
Marketing
Creating awareness of the right product and getting it to the right price and the right place
Niche market?
A segment of a larger market that you can define through its unique needs,preferences or identity
