Theme 4.1 - Global Business Flashcards

1
Q

What does GDP stand for

A

Gross domestic product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is GDP

A

The growth rate of the country which is measured annually

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is an emerging economy

A

Where there are increasing growth rates but a relatively low capita per head

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What’s is Uks growth like

A

UK often is seen to have lower growth due to manufacturing sector being down in emerging economies as there are
- lower labour costs
- access to raw materials

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is globalisation

A

The economic integration with different countries, companies operating internationally

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Implications of Economic growth

A
  • Reduced cost of production which lead to easier, quicker and cheaper access to raw materials
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the four indicators of growth

A
  • GDP
  • Health
  • Literacy
  • HDI
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are imports

A

Goods/services bought by people and businesses in one country to another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are exports

A

Goods sold by domestic businesses to people/businesses in other countries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is specialisation & 2 advantages

A

Where a country/business decides to focus on 1 product
+ lower unit costs
+ competitive advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What does FDI stand for

A

Foreign direct investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is FDI

A

Investment into a business in another country to gain a share in ownership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

3 Benefits of FDI

A
  • Increased economic growth
  • Increased job opportunities
  • Access to knowledge and expertise
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the two types of FDI

A

Inward and Outward FDI

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is inward FDI

A

Foreign investment into local economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is outward FDI

A

Expanding operations and investment into a foreign country

17
Q

What is trade liberation

A

Removal/reduction of barriers to trade between different countries

18
Q

Strength & Limitation of trade liberalisation

A
  • Domestic firms may not be able to keep up with international firms
    + Reduced costs, raw materials can be sourced more cheaply
19
Q

Influences on globalisation

A
  • Political change
  • Reduced trade barriers
  • Reduced transport and communication costs ( containerism - reduced business costs - economies of scale)
20
Q

What is Protectionism

A

Where the government seeks to protect domestic industries from foreign competition

21
Q

2 Examples of protectionism

A
  • Tariffs
  • Import quotas
22
Q

What is a tariff

A

Tax place on imported goods

23
Q

What is an import quota

A

Government imposed limit on amount of particular product allowed into a country

24
Q

EV - (strength&weakness) of Tariffs

A

+ protection of infant industries
- reduced competition

25
EV - (strength&weakness) of Import quotas
+ to meet extra demand domestic businesses need to hire more workers, decreasing unemployment - price of product will rise when supply becomes more and more limited
26
What is a trading bloc
Group of countries forming an agreement to reduce/eliminate protectionist measures between eachother
27
What are the 3 largest trading blocs
- EU (European Union) - ASEAN (Association of South East Asian nations) - USMCA (United States, Mexico and Canada)
28
What is the EU & Rules
- 28 countries - Free movement of people and goods (no trade restrictions)
29
What is the ASEAN & Rules
- 10 countries - Free movement of goods but not people
30
What is USMCA and rules
- 3 Countries - Aim in promotion free trade - USA relocated manufacturing to Mexico (cheaper labour)
31
What are 4 benefits of Trading Blocs for businesses
- Wider markets - external tariff walls - infrastructure support - free movement of labour
32
What are 4 drawbacks of Trading Blocs
- increased competition - common rules and regulations - retaliation - inefficiency