Definitions AL Flashcards
(57 cards)
Free trade (protectionism)
No restrictions or trade barriers exist that might prevent or limit trade between countries
Tariffs (protectionism)
Taxes imposed on imported goods to make them more expensive
Quotas (protectionism)
Limits on the physical quantity or value of certain goods that may be imported
Voluntary export limits (protectionism)
An exporting country agrees to limit the quantity of certain foods sold to one country (possibly to discourage the setting of quotas/tariffs)
Protectionism
Using barriers to free trade to protect a country’s own domestic industries
Globalisation
The increasing freedom of movement, capital and people around the world
Multinational business
A business organisation that has its headquarters in one country,, but has operating branches, factories and assembly parts in other countries
Privatisation
Selling state-owned and controlled business organisations to investors in the private sector
External growth
Business expansion acheived by means of merging with or taking over another business, from either the same or a different industry, the same sector or different sector
Merger
An agreement by shareholders and managers of 2 businesses to bring both firms together under a common board of directors a with shareholders in both businesses owning shares in the newly merged business
Takeover
When a company buys more than 50% of the shares of another company and so becomes the controlling owner of it AKA acquisition
Su=y Gerry
the idea that ‘the whole is greater than the sum of two parts’- in integration it is often assumed that the new larger business will be more successful that the two formerly separate businesses were
Social audit
A report on the impact a business has on society- this can cover pollution; health and safety record; supply sources; customer satisfaction; etc
Information technology
The use of electronic technology to gather, store, process and communicate information
Innovation
Creating more effective processes, products or ways of doing things in a business
Computer aided design
Using computers and IT when designing products
Computer aided manufacturing
The use of computers and computer-controlled machinery t speed up the production process and make it more flexible
Environmental audits
These audits assess the impact of a business’ activities on the environment
Pressure groups
Organisations created by people with a common interest or aim who put pressure on businesses and governments to change policies so that an objective is reached
Economic growth
An increase in the country’s productive potential measured by an increase in its real GDP
GDP (Gross Domestic Product|)
The total value of goods and services produced in a country in one year- real GDP is this value adjusted to inflation
Business investment
Expenditure by businesses on capital equipment, new technology and research and development
Business cycle
The regular swings in economic activity, measured by real GDP, that occur in most economies, from boom (high demand and rapid growth) to recession (when total national output declines)
Recession
A period of 6 months or more of declining real GDP
