4.1.1 Flashcards
(21 cards)
What effect will selling products in a new country have?
Increase in profitability/revenue
What effect might moving manufacture to another country have?
Decrease in unit costs or transport costs
What are 2 possible benefits of globalisation to a company?
- Reducing costs
- Increasing revenue
What are ‘developed economies’?
Countries which became industrialised in the 19th century, such as Europe, North America, Australia and Japan
What are ‘emerging economies’?
Countries which became industrialised within the last 50 years, such as China, India, Indonesia and Vietnam
What are ‘developing economies’?
Countries which still have small industrial sectors, such as Asian & African countries, South America
What are the indicators of the status of an economy?
- Welfare provisions
- Life expectancy
- Per capita incomes
- Healthcare
- Literacy levels
What is GDP?
Gross Domestic Product per capita, the value of all goods and services produced by a nation over a period of time, usually a year, divided by the number of people in the country
What is the literacy rate?
Links to quality of potential employees, the percentage of adults (over 15) that can read and write
What effect do national health levels on the economy, or visa versa in a country?
A country with a healthy population is more likely to grow, healthy people work better, larger companies operating in developing countries often operate healthcare programmes
What is the HDI?
Human Development Index - ranking countries according to their stage of human development, mainly analysed around life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development
What are BRICs?
In 2002 it was clear a number of countries were developing fast; mainly in Brazil, Russia, India and China
What are CIVETS?
Named in 2009 as they key six emerging economies; Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa
What are MINTs?
Similar to CIVETs, Mexico, Indonesia, Nigeria and Turkey
What two main things are required for economic growth?
More resources and more jobs
What two effects does the growth of an economy have on itself?
Increases incomes, and thus generates demand
What is the most dominant sector in the UK?
The tertiary sector
MINTs and BRICs have ____ rates of growth, but are still ______ ______
They may have HEALTHY rates of growth, but are still CATCHING UP
What 6 factors have contributed to the rate of globalisation?
- Consumer tastes
- Emerging markets
- Cost of transportation
- Technological change
- Cost of communication
- Deregulation
What is ‘specialisation of economies of scale’?
When a business is bigger, they can afford to employ specialists, such as accountants etc it offers greater efficiency though specialist employees
What is ‘division of labour’?
You employ a marketer, an assembler who specialises at each of their jobs, and can spend more time on certain aspects of the business/products/production, and overall improve quality
