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Flashcards in Examen 2 Deck (26):
1

What is 1,2,3 sector

1= extraction of raw materials
2= transforming raw materials into finished or semi finished goods
3= production of services in the economy

2

What is MNC

Multinacional company

3

Benefits of multinacional company

Access to larger market
More profit
Better reputation

4

Advantage to the host country were a MNC is

Creates employment
More tax income

5

Disadvantage for the host country were the MNC is

Pollution
Host country businesses forced to closed

6

What is a LTD

Prívate limited company~does not sell shares on stock market

7

Advantages of LTD

Shareholders have limited liability

Control cannot be lost to outsiders

8

Disadvantage of LTD

Financial information has to be made public

Shareholders elect director of the business

9

What is a tarifs

Taxes on import

10

What is a quota

Physical limit of the amount of “X” allowed into the country

11

What is a subsidy

Giving financial support to domestic producer

12

What is administrative barriers

Health and safety regulations, lots of paper work to make importing difficult

13

Advantages globalization

Access to labor

Easy access to market

14

Disadvantages of globalization

Pollution
International takeover

15

What is monetary policy

Change of interest rates to manage economy

16

If interest rate increases what happens ?

Spending decreases, savings increases, demand decreases, sales revenue decreases

17

What is fiscal policy

Change in taxation to manage economy

18

What is direct taxes

Taxes in income

19

Indirect taxes

Taxes in spending

20

What does SPICED stand for?

Strong
Pound
Imports
Cheap
Export
Dear

21

Factors of location

Visibility
Cost
Workforce
Competition
Transport links

22

Greenfield definition

Undeveloped areas of land on the outskirts of the city

23

Brown field definition

Areas used in urban development

24

adventages PLC

Large amount of capital can be raised
Shares can be sold and bought easily
Limited Liabilty

25

Disadvantages PLC

Outsiders can take control
Setting up cost may be very expensive

26

What is globalization

Growing integration of global economies