Theme 4

Question 1

Exchange rate

Answer 1

The value of one currency against another

Question 2

Economies of scale

Answer 2

Increasing the scale of production leads to the cost benefit of lower cost per unit of output

Question 3

Push factor

Answer 3

Factors in the existing market that encourage a business to seek international opportunities

Question 4

Pull factor

Answer 4

Factors that notice firms into new markets that act as an opportunity

Question 5

GDP

Answer 5

A measure of the size and health of a country’s economy over a period of time

Question 6

Emerging economy

Answer 6

A country with rapid growth and industrialisation

Question 7

Ethnocentric approach

Answer 7

A firm making little or no attempt to adapt their products for the local market

Question 8

Polycentric approach

Answer 8

A firm that adapts products to suit the local markets that they intend to sell to

Question 9

Geocentric approach

Answer 9

‘The glocalisation approach’
Uses a combination of polycentric and ethnocentric to maintain the global brand name but tailor its products to local markets

Question 10

Indicators of growth

Answer 10

GDP
literacy rate
Health
HDI

Question 11

Offshoring

Answer 11

Moving manufacturing or service industries to a part of the world with lower production costs

Question 12

Outsourcing

Answer 12

Moving a business function to a specialist external provider

Question 13

BRICS

Answer 13

Brazil Russia India China South Africa

Question 14

Economic growth

Answer 14

An increase in the GDP of a country

Question 15

Emerging economy

Answer 15

economies where there is rapid growth of gdp and infrastructure

Question 16

GDP

Answer 16

Measures the output of goods and services in an economy over a period of time

Question 17

HDI

Answer 17

an index focusing on 3 basic measures of human development

Life expectancy
Literacy rate
Standard of living

Question 18

Literacy rate

Answer 18

A measure of growth the percentage of adults that can read and write

Question 19

MINT

Answer 19

Mexico Indonesia Nigeria Turkey

Question 20

FDI

Answer 20

Foreign direct investment
When a business invests by setting up operations or buying assets in another country

Question 21

Globalisation

Answer 21

The process of economies becoming more integrated through trade and technology

Question 22

Trade liberalisation

Answer 22

The reduction or removal of trade barriers between countries

Question 23

Domestic subsidies

Answer 23

Financial support given to a domestic producer to help compete with overseas firms

Question 24

Import quotas

Answer 24

A physical limit on the quantity of imports allowed into a country

Question 25

Tariffs

Answer 25

A tax on imports to make them more expensive

Question 26

ASEAN

Answer 26

The South East Asian Nation trading bloc

Question 27

EU

Answer 27

The European Union The most powerful trading bloc A single market that guarantees free movement of people, goods, services and capital

Question 28

NAFTA

Answer 28

The North American trading bloc Canada USA Mexico

Question 29

Single market

Answer 29

A market where this is minimal or no trading barriers

Question 30

Trading bloc

Answer 30

A group of countries with an agreement on having reduced or no protectionist methods

Question 31

Saturated market

Answer 31

A market that is highly competitive with little room for growth

Question 32

Ease of doing business

Answer 32

The number of barriers a business faces when entering a market

Question 33

Subsidy

Answer 33

A payment made to a producer to lower the cost of production

Question 34

Global merger

Answer 34

When two companies from different countries combine businesses

Question 35

Joint venture

Answer 35

When two or more businesses come together for a project but remain their own seperate entity

Question 36

Glocalisation

Answer 36

A marketing strategy that adapts a global product to suit tastes of different regions

Question 37

Global niche market

Answer 37

Smaller specialised parts of the market where there are specific customer needs

Question 38

MNC

Answer 38

A multinational company Operates in more than one country

Question 39

WTO

Answer 39

World trade organisation Supervises world trading arrangements and promotes the benefits of free trade