unit 7 key terms

Question 1

emerging market

Answer 1

a country whose GDP is growing faster than average and has the potential to grow further in terms of productive capacity, market opportunities and competitive advantage.

Question 2

Migration

Answer 2

the movement of people from one place to another. Immigration is into a nation, immigration is people moving out of a nation.

Question 3

Monetary policy

Answer 3

the control of interest rates and money pullet in order to influence the level of spending in an economy

Question 4

Barrier to entry

Answer 4

factors that make it difficult or impossible to enter an industry e.g economies of scale.

Question 5

inflation

Answer 5

a sustained increase in the average prices of goods and services. Inflation also represents a fall in the purchasing power of money.

Question 5

exchange rate appreciation

Answer 5

a rise call of the currency compared to other currencies.

Question 6

expansionary economic policy

Answer 6

any government action that stimulates the increase in GDP e.g cutting taxes

Question 7

fiscal policy

Answer 7

using taxation and government expenditure to influence the economy. Usually announced by the Chancellor of the budget.

Question 8

cost push inflation

Answer 8

a general rise in prices caused by an increase n costs

Question 9

business cycle

Answer 9

a regular fluctuation of income and output within an economy over time. 4 phases: boom, recession, dump and recovery.

Question 10

budget deficit

Answer 10

when taxation receipts are less than governmentspending. Low taxes and high government spending help the economy to expand and boosts overall denied for firm’s products.

Question 11

globalisation

Answer 11

the growing trend towards worldwide markets in products, services, capital and labour unrestricted by barriers. Increasing integration of the worlds local, regional and national economies into a single market.

Question 12

oligopoly

Answer 12

a market form wherein an industry is dominated by a small number of businesses who are inter-dependent.

Question 13

protectionism

Answer 13

an attempt by government to impose restrictions on trade in goods and services using policies like tariffs and quotas.

Question 14

pressure group

Answer 14

an organisation whose members have a common cause for which they seek to influence political or corporate decision makers to achieve a declared objective.

Question 15

quantitive easing

Answer 15

increasing the money supply by electronic money creation. Often involves governments using this money to buy governmental bonds to reduce loth term interest rates encourage

Question 16

quota

Answer 16

a physical limit placed on the imports of certain products.

Question 17

regulator

Answer 17

a government empowered organisation which aims to enforce the law

Question 18

self regulation

Answer 18

a process whereby an organisation monitors its own observance of ethical safety standards rather tan a third party agency.

Question 19

shareholder concept

Answer 19

the view that businesses exist only to meet the needs of the shareholders. Best done by maximising profits and therefore shareholder value.

Question 20

stakeholder concept

Answer 20

a view that businesses should aim to look after anyone impacted by the business as a fulfilment of their short term duties. Help to attain ethical goals

Question 20

short termism

Answer 20

the pressure to deliver quick or short term results to the likely harm of long term goals.

Question 21

tariff

Answer 21

a tax imposed on imported products

Question 22

urbanisation

Answer 22

the movement of people from the countryside to live in towns

Question 23

world trade organisation

Answer 23

an international body that policies international trade. encourages free and fair international trade via eliminating trade barriers.