What are growing economies?
Over time, almost all economies grow thanks to rising productivity and and population
What is economy?
The state of an area in terms of the production and consumption of goods/services as well as the supply of money
What is GDP?
The value of all goods and services produced in a country in the course of a year
What is per capita?
Per head of population
What is PPP (Purchasing Power Parity)?
A popular metric used by macroeconomic analysts that compares different markets
What are BRICs?
Have a large population, access to key resources, regional influence and economic growth
Brazil Russia India China
They have global influence and power, for economic, cultural and geopolitical factors
What are MINTs?
Have very favourable demographics and interesting economic prospects
Mexico Indonesia Nigeria Turkey
What happens when you grow?
Employment patterns change: working women, migration, multi job, home working
Can move away from agriculture and ‘simple’ industries into economic activities
There is a rise in service based jobs because as incomes rise, so does the demand for cleaners, gardeners, etc
Research and development sector has developed
What are indicators of growth?
GDP= sum of everything a country produces
Literacy= how many can read and write
Health= life expectancy
HDI= life expectancy, education and income
What are imports?
Goods that are made in other countries and brought into the UK
What are exports?
Goods manufactured in the UK and sold abroad?
What is negative balance?
When a country imports more than they export
What is specialisation?
When a country dedicates a bulk of its resources to a particular industry or sector
What are advantages of specialisation?
-Increased productivity
-Gains EOS
-Comparative advantage to other countries (price, etc)
-GDP growth and boosts economic growth
What are disadvantages of specialisation?
-Reliant on the sector
-Competition
-If it grows too big it may suffer from DEOS
What is FDI (foreign direct investment)?
An investment made by a firm or individual in one country into a business located in another country
What are advantages of FDI?
-Brings in new, high paying jobs
-Brings new technology
-Creates new markets
-Increases exports
What are disadvantages of FDI?
-Creates reliance on foreign businesses
-Takes domestic workers away
-Increases pressure to specialise
-Limits potential resources for domestic business
-Domestic businesses may struggle to remain competitive
What is globalisation?
The process by which businesses or other organisations develop international influence or start operating on an international scale
What are international trade barriers?
-Tariffs
-Potential disinterest
-Cultural differences
-Exchange rates
-Cost and marketing
-Materials available/unavailable
What is trade liberalisation?
The process by which international trade is made easier
What are benefits of trade liberalisation?
-Markets more competitive
-Creates opportunities
-Customers benefit
-Diversifies risks
-Facilitates competition
-Productivity
What is protectionism?
Restraining the trade between economies to allow fair competition between foreign imports and domestic goods or services produced
What are tariffs?
A tax imposed by a government on imported goods
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1.1- meeting customer needs37
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1.2- the market16
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1.3- marketing mix55
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1.4- managing people86
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1.5- entrepreneurs and leaders35
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2.1- raising finance35
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2.2- financial planning content58
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2.2- financial planning formulas11
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2.3- managing finance content33
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2.3- managing finance formulas3
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2.4- resource management52
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2.5- external management58
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3.1- business objectives and strategy73
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3.2- business growth41
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3.3- decision making techniques47
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3.4- influences on business decisions77
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3.5- Assessing competitiveness17
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3.6- Managing Change14
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4.1- globalisation43
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4.2- global markets and business expansion19
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4.315
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4.4- Global Industries and MNCs13
