Topic 6: The impacts of global events and ethics Flashcards

1
Q

What is globalisation

A

the integration of business industry and society through developments in technology communication and migration

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2
Q

How many countries has HSBC expanded into

A

65

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3
Q

The international Monetary fund (IMF)

A

International body of 189 countries that aim to cooperate

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4
Q

What are common critics of globalisation

A

Undermines local culture
systematic failure
multinational companies rival small business
mergers and accusations can result in redundancy

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5
Q

What is toxic debt

A

debt with low chance of being repaid with interest

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6
Q

first bank in UK hit by 08 crisis

A

Northern Rock

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7
Q

What are the effects of globalisation

A

UK face competition from overseas, better for consumers

UK can expand overseas and have increased employment

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8
Q

What is outsourcing

A

provider paying another to carry out tasks they previously would’ve done

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9
Q

What is offshoring

A

moving parts of operations abroad to cut costs

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10
Q

what is economies of scale

A

cost advantages reaped by companies when production becomes efficient

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11
Q

The global economy

A

the total of all activity in the national or regional economies of which its composed

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12
Q

exchange rates

A

The price of a currency compared to another

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13
Q

explain the benefits and drawbacks of a weak and strong pound

A

Weak pound = better exports worse imports

strong pound = better imports worse exports

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14
Q

What is real economy

A

demand and supply for products and services

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15
Q

What is an international trade organisation

A

International bodies try to persuade governments to co-ordinate economic policies

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16
Q

Protectionism

A

government policies designed to protect a country’s business and workforce

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17
Q

The world trade organisation

A

160 members goal to ensure trade flows smoothly and freely

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18
Q

what are 3 regional unions and their member status

A

EU - 27 members
Association of Southeast Asian nations - 10 members
Caribbean community - 15 members, 5 associates

19
Q

Gross Domestic Product (GDP)

A

The total value of goods produced and services provided in a country during one year

20
Q

GDP per Capita

A

total GDP divided by Population

21
Q

Overheated Economy

A

rapid unstable growth which leads to higher prices to meet demands

22
Q

Boom and Bust cycle

A

rapid growth followed by failing output

23
Q

sustainable growth

A

growth controlled enough to be able to continue into the medium and long term.

24
Q

Higher productivity

A

more goods and services with the same resources

25
How does global uncertainty affect savers
consumers opt for safer investments like guilts
26
How does global uncertainty affect borrowers
Banks cut borrowing (credit crunch) | consumers more cautious focused on repaying
27
How does global changes affect employment and earnings
falling growth = falling employment levels = job losses and debt not repaid
28
How does global changes affect emerging markets
can cause problems for established countries | high price of commodities = high net commodity price
29
What is BRIC and MINT
Brazil, Russia, India and China | Mexico, Indonesia, Nigeria, Turkey
30
Runaway inflation
very rapid inflation
31
How to join Euro zone
Must meet certain standards of fiscal stability, independent central banks, low inflation and rates, established stable currencies.
32
What does European central bank do
sets base interest rate for euro area
33
what 3 members joined EU
Estonia 17th member Jan 2011 Latvia Jan 2014 Lithuania Jan 2015
34
What 5 countries hit hard by crisis in EU | what was there unemployment rates
1. Greece - Oct 2014 25.78% 2. Ireland - 3 billion bailed out by UK 3. Spain - Nov 2014 23.9% 4. Portugal - 2012 17% 5. Italy - 2014 13.4%
35
HM Treasury
responsible for setting economic policy
36
How can natural disasters affect finances
Global warming affects how industry flooding = higher prices death repairs volcano eruption Iceland 2010 disrupts flight
37
What is the jobs of directors and auditors
directors - duty to all shareholders | auditors - duty for accuracy in accounts
38
What is Jupiter emerging European opportunities fund
fund that invests in new EU markets
39
What happened due to Pandemic
1. lockdowns 2. business closures 3. reduced spending 4. government deficit
40
The UK Sustainable Investment and Finance (UKSIF)
membership organisation committed to growing sustainable responsibility in UK
41
What is corporate social responsibility
self regulation to demonstrate social and ethical standards
42
what are ethical brand and ethical operations
Brand - don't offend or miss market to anyone | operations - ethical running of day-to-day tasks
43
Systematic failure
complex interdependent networks that are at risk of huge collapse
44
project merlin
agreement between the government and the main banks to pay lower bonuses to their employees and make more money available for business loans.