Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business > Trade > Flashcards

Trade Flashcards

1
Q

What are the reasons for remaining in the UK?

A

-History of the business
-Maintain control over quality
-Better customer service

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

What are the reasons for manufacturing elsewhere?

A

-Lower production costs
-Falling demand in home markets
-Supply of workers

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

What is a push factor?

A

Factors that push a business to expand outside of their domestic country
e.g.
-low growth opportunities
-need to diversify

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

What is a pull factor?

A

Encourage businesses to operate within markets abroad which present growth opportunities
e.g.
-way to extend product lifecycle
-emerging economies abroad

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

What is offshoring?

A

A business may decide to move part of the production process, or all of it, to another country

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

What is outsourcing?

A

When a business hires an external organisation to complete certain tasks or business functions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How can companies extend the product life cycle?

A

-Discounts/offers
-Change the packaging
-Add new features
-Promotion strategies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What do you do to assess a country as a market?

A

-Levels of growth and disposable income
-Exchange rates
-Ease of doing business
-Infrastructure
-Political stability

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

How do you assess a country for production?

A

-Cost of production
-Skills and availability of labour force
-Trade blocs
-Natural resources
-Government incentives

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

What is the ease of doing business in a market?

A

Looking at regulations and policies that are important for starting and growing a business
e.g. taxes, trading, contracts

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

What is political stability in a market?

A

Operating in places where political systems are stable
e.g. riots, civil war, terrorism

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

What is infrastructure in a market?

A

-Includes roads, transportation, communication, buildings, reliable power systems and premises
-Good infrastructure improves the production process and delivery of the goods which reduces costs and increases sales

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

What are levels of growth and disposable income in a market?

A

If disposable incomes increase that can mean a growth in consumption leading to more sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are exchange rates in a market?

A

-If the £ strengthens it will be more difficult to sell to that market for UK firms
-If the £ weakens it will be easier to sell to that market for UK firms

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

What factors do you consider when choosing a country as a production location?

A

-Trade blocs
-Skills of labour/availability of labour
-Ease of doing business
-Distribution links
-Infrastructure

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

What are the costs of production?

A

Labour, electricity, gas, operating costs
Benefits:
-Reduces production costs
-Increases profits
-Gain competitive advantage by passing the cost reductions onto customers

17
Q

What is skills and availability of labour force?

A

Low unit labour costs, high productivity, level of skills and education, size of workforce
Benefits:
-Reduces unit cost per item
-Can improve quality of product
-Increased rate of production increases efficiency

18
Q

What is location in a trade bloc?

A

Access to larger markets, reduction in trade barriers
Benefits:
-Increased market
-Reduced imports/export costs
-Reduced political intervention

19
Q

What are government incentives?

A

Keen to attract foreign businesses so offer grants, tax breaks or investment
Benefits:
-Reduces initial investment of relocation
-Incentive for local government support

20
Q

What are natural resources?

A

Locating closer to areas with large abundances of raw materials is easier and less expensive to transport
Benefits:
-Reduced transport costs
-Closer to materials which improves the efficiency of transportation

21
Q

What is the ease of doing business for production?

A

E.g. basic legal systems, political systems
World Bank Factors:
-Ease of starting a business
-Getting electricity
-Ease of exporting
-Enforcing contracts
-Ease of receiving construction permits

22
Q

What is political stability for production?

A

-The political stance and role of the governments in setting laws, tax levels and trade policies
-Consider the stability of the legal and political environment as well as regularity of changes
-Instability includes: riots, civil wars and terrorism

23
Q

What is a merger?

A

A combination of two previously separate firms forming a completely new business

24
Q

What is a joint venture?

A

A separate business entity is created by two or more parties which involves shared ownership

25
Q

What are the factors of a merger?

A

-Increased economies of scale
-Sharing technology and knowledge
-Long term
-Increased market share
-Businesses integrate completely
-Shares issued in name of new business
-Creation of a new third business

26
Q

What are the factors of a joint venture?

A

-Increased economies of scale
-Two businesses working together
-Sharing technology and knowledge
-Can be long term or short term
-Can create a new third business

27
Q

What are the reasons for a merger or joint venture?

A

-Spreading risk over different countries/regions
-Enter new markets and trade blocs
-Acquiring national/international brand names/patents
-Securing resources/supplies
-Maintaining/increasing global competitiveness

28
Q

What are the problems with mergers and joint ventures?

A

-Unrealistic objectives, may overestimate the benefits
-Communication and culture, may have very different practises leading to a clash of cultures
-Management issues, lay offs and cost cutting measures may lose key employees
-Finances, can be costly or involve expensive legal fees

29
Q

What is competitive advantage?

A

An advantage over competitors gained by offering consumers greater value
E.g. lower prices or greater benefits which justify a higher price

30
Q

What factors influence competitiveness?

A

-Lower price
-Differentiate e.g. USP, brand name, quality

31
Q

What is cost leadership?

A

Producing the same quality products as competitors but at a lower price
Can be due to:
-Good resource management
-Efficient production methods
-Waste minimisation

32
Q

What is differentiation?

A

Producing a unique product or giving a unique service which can allow a premium price to be charged
E.g. performance, style, design

33
Q

What factors influence global competitiveness?

A

-Movements in the exchange rate
-Labour skills shortages

34
Q

How does exchange rates influence global competitiveness?

A

-A sharp depreciation will make exports cheaper and more competitive
-An appreciation will make export prices more expensive
-Affects outsourcing business if they’re abroad

35
Q

How will a skill shortage affect global competitiveness?

A

-Workers lack the right qualifications in an industry
-Skills influence productivity and competitive advantages

Business (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions