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Flashcards in External influences Deck (7)
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1

Globalisation is ...

The process of growth in world markets through a process of integration where it is possible to trade in a global market on the same way as one would in a domestic market

2

What is international trade?

the exchange of goods, services and capital across the borders of different countries

3

Why is international trade beneficial to companies?

-variety
-economic efficiency
-growth
-international co-operation
-specialisation

4

Why is competition useful?

-forces businesses to be efficient
-keep prices low for consumers
-encourages innovartion

5

Barriers to entry

-high start up costs
-legal barriers
-economies of scale from existing firms
-superior knowledge

6

Barriers to exit

- high redundancy costs
-can't sell factories
-can't break contacts with suppliers

7

What is CMA and what does it do?

Competition and Markets Authority
-- enforces competition law