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Business Studies EDEXCEL IGSCE > Business Activity and influences on businesses :Unit 9-15 > Flashcards

Business Activity and influences on businesses :Unit 9-15 Flashcards

1
Q
  1. What are emerging economies?
A

rapidly growing economies - emerging economies have huge growth potential but also pose significant risks.

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2
Q
  1. What is globalization?
A

it is the growing integration of the world’s economies.

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3
Q
  1. What are the 5 key features of globalization?
A
  • goods and services are traded freely across international borders.
  • People are free to live and work in any country they choose.
  • There is a high level of interdependence between nations.
  • capital can flow freely between different countries.
  • Free exchange of technology and intellectual property.
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4
Q
  1. What is intellectual property?
A

people’s knowledge or creative ideas that have commercial value and are protectable under different forms of copyright.

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5
Q
  1. What are the 5 reasons for globalization?
A
  • Development in technology.
  • International transport networks have improved in recent years.
  • a huge amount of deregulation.
  • increase in tourism has also helped globalization to thrive.
  • firms want to sell abroad, once domestic markets become saturated.
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6
Q
  1. What is a monetary system?
A

system of money in a particular country or the world as a whole, and the way that is is controlled by governments and central banks.

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7
Q
  1. What is saturate(market)?
A

to offer so much of a product for sales that there is more than people want to buy,

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8
Q
  1. What are the 4 actions of a government that does?
A
  • international borders open.
  • Put down trade barriers.
  • are free to live and work in overseas countries.
  • planning and development permission is accepted.
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9
Q
  1. What are the 4 opportunities of globalization?
A
  • Access to larger markets.
  • Lower costs.
  • Access to Labor.
  • Reduced taxation.
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10
Q
  1. What are the 3 threats of globalization?
A
  • Competition.
  • International takeovers.
  • Increased risk of external shocks.
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11
Q
  1. What is a hostile takeover?
A

takeover that the company being taken over does not want to or agree to.

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12
Q
  1. What are the 3 reasons multinationals have developed?
A
  • Marketing.
  • Economies of scale.
  • Technical and financial superiority.
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13
Q
  1. What are commodities?
A

products that are bought and sold.

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14
Q
  1. What are the 5 benefits to a business of becoming a multinational?
A
  • Larger customer base.
  • Lower costs,
  • Higher profile.
  • Avoiding trade barriers.
  • Lower taxes.
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15
Q
  1. What are the 6 benefits of multinationals to a country/ economy?
A
  • increase in income and employment.
  • increase in tax revenue.
  • increase in exports.
  • transfer of technology.
  • improvement in the quality of human capital.
  • enterprise development.
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16
Q
  1. What are the currency reserves?
A

money in foreign currency held by a country and used to support its own currency and to pay for imports and foreign debts.

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17
Q
  1. What is human capital?
A

people and their skills.

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18
Q
  1. What is enterprise?
A

the activity of starting and running businesses

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19
Q
  1. What are the 4 drawbacks to a multinational to a country or economy?
A
  • Environmental damage.
  • Exploitation of less developed countries.
  • repatriation of profits.
  • Lack of accountability.
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20
Q
  1. What is exploitation?
A

-a situation in which you mistreat someone by asking them to do things for you, but give them very little in return.

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21
Q
  1. What is the repatriation of profit?
A

where a multinational returns the profits from an overseas venture to the country where it is based in.

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22
Q
  1. What is surplus?
A

amount of something that is more than what is needed or used.

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23
Q
  1. what are the two features of international trade?
A
  • obtain goods that cannot be produced domestically.
  • obtain goods that can be bought more cheaply from overseas
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24
Q
  1. What are exports?
A

goods and services sold overseas.

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25
Q
  1. What are imports?
A

goods and services bought from overseas.

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26
Q
  1. What is visible trade?
A

trade in physical goods.

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27
Q
  1. What is invisible trade?
A

trade in services.

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28
Q
  1. What is a balance of trade (or visible balance)?
A

difference between visible exports and visible imports

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29
Q
  1. What is exchange rate?
A

value of one currency in term in terms of another.

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30
Q
  1. What are transactions?
A

business deals, or actions such as buying or selling something.

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31
Q
  1. What does a fall in exchange rates have an impact on exports? imports?
A

exports will increase. imports will decrease.

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32
Q
  1. What does a rise in exchange rates have an impact on exports? imports?
A

exports will decrease. imports will increase.

33
Q
  1. What is commission?
A

an extra amount of money that is paid to a person or organisation according to the value of the goods they have sold or the services they have provided.

34
Q
  1. What are the 9 public services governments spend on?
A
  • health care.
  • defense.
  • education.
  • a judicial system.
  • policing.
  • transport networks.
35
Q
  1. how is money raised to help fund public sector services?
A

-taxation

36
Q
  1. What is fiscal policy?
A

using taxation and government expenditure to manage the economy,

37
Q
  1. what is taxation?
A

the levying of tax.

38
Q
  1. How do constraints on public spending impact? - The public sector -private sector - the public
A
  • lay off of staff.
  • private sector businesses that rely on public sector contracts.
  • cuts in pension.
39
Q
  1. What are the 4 ways government affects business activity?
A
  • change the law.
  • the rate of interest and exchange rates.
  • government expenditure and taxation.
  • introduce polices that have a direct impact on businesses such as giving subsidies to farmers.
40
Q
  1. What are the 3 specific approaches to government regulating business activity?
A
  • infrastructure provision.
  • legislation.
  • trade policy.
41
Q
  1. What are the 3 areas of legislation?
A
  • consumer protection
  • competition policy.
  • environmental legislation.
42
Q
  1. What are social security payments?
A

money taken by the British government from people’s wages to pay for the system of payments to people who are unemployed or ill.

43
Q
  1. What is anti-competitive practices?
A

(restrictive trade practices) attempts by firms to prevent or restrict competition.

44
Q
  1. What are barriers to entry?
A
  • restriction that mean it is difficult for new firms to enter a market.
45
Q
  1. What are the 4 anti-competitive practices/ restrictive practices?
A
  • increasing prices to higher levels.
  • price fixing avoid price competition.
  • restricting consumer choice by market sharing.
  • raising barriers to entry.
46
Q
  1. How does the government promote competition? (3)
A
  • Encourage the growth of small firms.
  • Lower barriers to entry.
  • Introduce anti- competive legislation.
47
Q
  1. What is protectionism?
A

use of trade barriers to protect domestic producers.

48
Q
  1. What are infant industries?
A

new industries that are yet to be established.

49
Q
  1. What is dumping?
A

where a business sells goods in another country often below cost.

50
Q
  1. What are the 4 uses of trade policy?
A

-protect jobs .
- protect infant industries.
- prevent dumping.
- raise revenue from tariffs.

51
Q
  1. What are the 4 trade barriers?
A

tariffs.
- Quota.
- Subsidy.
- Administrative barriers.

52
Q
  1. What is Quota?
A

a physical limit on the amount allowed into the country.

53
Q
  1. What is subsidies?
A

the giving of financial support, grants, tax breaks, to help exporters face fierce competition from importers.

54
Q
  1. What are Tariffs?
A

a tax imports.

55
Q
  1. What are Administrative barriers?
A

the use of strict health and safety or environmental regulations.

56
Q
  1. What are external factors?
A

factors that affect the business that are completely beyond their control.

57
Q
  1. What are the 4 external factors?
A
  • Social.
  • Technological.
  • Environmental.
  • Polictal/Legislation
58
Q
  1. What are the 5 social changes?
A
  • increased consumer awareness.
  • changing demand patterns.
  • Increased numbers of women at work.
  • More part-time workers.
  • Urbanization.
59
Q
  1. What is urbanization?
A

process of constructing more and more buildings on rural land.

60
Q
  1. What are the 3 impacts of technology on businesses?
A
  • cheaper.
  • high productivity.
  • improved communication and transport systems.
61
Q
  1. What is capital-intensive?
A

use of relatively more machinery than labour in production

62
Q
  1. What are the 4 environmental issues?
A
  • Global Warming.
  • Habitat Destruction.
  • Resource depletion.
  • sustainable development.
63
Q
  1. What are the 4 ways for sustainable development?
A
  • Reusable and recycled packaging,
  • use of more renewable energy sources.
  • explore ways of selling waste as a by product.
  • reduce business travel and use online communication.
64
Q
  1. What are the 6 measures of success in business?
A
  • Revenue.
  • Market share.
  • Profit.
  • Customer satisfaction.
  • Growth
65
Q
  1. What are the 5 measures of growth?
A
  • Turnover / revenue.
  • The number of employees.
  • Market share.
  • the amount of capital employed.
  • EU definitions of size.
66
Q
  1. What is capital employed?
A

amount of money invested in a business.

67
Q
  1. What is overtrading?
A

taking on more work than a business can afford to fund effectively.

68
Q
  1. What is inventory?
A

stock of goods

69
Q
  1. What is business failure?
A

Business failure refers to a company ceasing operations following its inability to make a profit or to bring in enough revenue to cover its expenses.

70
Q
  1. What are the 4 reasons for business failure?
A
  • cash flow problems.
    -lack of finance.
  • Not competitive.
  • failure to innovate.
71
Q
  1. What are the 8 reasons for cash problems?
A
  • overtrading.
  • investing too much in fixed assets.
  • allowing too much credit.
  • over-borrowing.
  • seasonal factors.
  • unexpected expenditure.
  • external factors.
  • poor financial management.
72
Q
  1. What are fixed assets?
A

resources that are used repeatedly for a period of time by a business such as property, tools, vehicles, and machinery.

73
Q
  1. What is downturn?
A

period or process in which business activity, production, etc. is reduced and conditions become worse.

74
Q
  1. What is undercapitalized?
A
  • starting a business with in sufficient capital.
75
Q
  1. What are the 5 reasons for a business not being competitive?
A
  • new entrants of rivals.
  • ineffective cost control.
  • ineffective marketing.
  • Lack of business skills.
  • Poor leadership.
76
Q
  1. What are the 5 reasons for ineffective cost control?
A
  • too small to exploit economies of scale.
  • they may be wasteful.
  • It is possible that a business is paying too much for some of its resources.
  • Might not be minimizing labor costs.
  • costs might also rise owing to external factors.
77
Q
  1. What are the 4 ineffective marketing?
A
  • failure a launch a new product.
  • inappropriate pricing strategies.
  • might invest too heavily in overpriced or inappropriate marketing campaigns.
  • might use appropriate marketing strategies.
78
Q
  1. What are 4 possible rivalry coming from new entrants?
A
  • bringing out superior products.
  • read market conditions more effectively.
  • charge lower prices because their costs are lower
  • Use ‘destroyer pricing’ this might happen when a company dump a cheap product in a foreign market.
79
Q
A

Business Studies EDEXCEL IGSCE (13 decks)

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