Topic 2.4 Globalisation. Flashcards
Define “globalisation”
The trend for markets to become worldwide in scope.
Define a “multinational company (MNC)”
Produces goods and services in more than one country. They are also called transnational corporations (TNCs)
Define “international trade”
The selling of goods and services across national borders.
Define “exports”
Goods and services produced by a business in one country and sold in another.
Define a “tariff”
Tax on foreign goods imported into a country.
Define “growth”
When a business sells increased quantities of its products.
Define “economies of scale”
When the cost of producing a single unit falls as output increases.
Define “inward investment”
When governments, businesses and individuals invest capital into another country, for example, building new factories or buying companies.
Define a “takeover”
When one business buys control of another.
Define “product design”
Producr design translates the needs of consumers, or the inventiveness of entrepreneurs, into a saleable product.
Define “quality”
The extent to which a consumer is satisfied with a product.
Define “price”
The amount a business asks a customer asks to pay for a single product.
Define “exchange rate”
The price of one currency expressed in terms of another.
Define “imports”
Goods and services purchased from overseas customees in the domestic market.
Define “profit”
The amount by which a business’s revenue from all its sales exceeds its total costs,
