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Business studies key terms > Theme 4 > Flashcards

Theme 4 Flashcards

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1
Q

BRICS

A

Economies are considered to be: Brazil, Russia, India, China and South
Africa.

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2
Q

Economic
growth

A

An increase in the GDP - value of output of goods and services
produced in an economy over time

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3
Q

Employment
patterns

A

A key indicator of growth looking at unemployment rates, trends, labour
costs and productivity as well as education qualifications and potential
employees

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4
Q

Economy

A

An area/country where goods and services are produced, sold and
bought

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5
Q

Emerging
economy

A

The economies of developing countries where there is rapid growth, but
also significant risk

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6
Q

GDP

A

Gross Domestic Product. Measures the output of goods and services in
an economy over a period of time

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7
Q

HDI

A

Is a composite index focusing on three basic measures of human
development: Life expectancy at birth, mean years of schooling and
expected years of schooling and standard of living, measured by gross
national income per capita

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8
Q

Health

A

A key indicator of the level of development and may include, life
expectancy at birth, mortality, pollution exposure and clean access to
water

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9
Q

Literacy

A

A key indicator of growth. The literacy rate looks at the percentage of
adults that can read and write

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10
Q

MINTS

A

Economies are considered to be Mexico, Indonesia, Nigeria and Turkey

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11
Q

Exports

A

Goods or services that a firm produces in its home market, but sells in a
foreign market

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12
Q

FDI

A

Foreign Direct Investment, when a business invests by setting up
operations or buying assets in businesses in another country

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13
Q

Imports

A

Goods and service that are bought into one country from another

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14
Q

Specialisation

A

When an economy or a business concentrate on a specific range of
products or services.

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15
Q

Foreign
Direct
Investment
(FDI)

A

When a business with head office in one country, sets up factories,
offices etc in another country

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16
Q

Globalisation

A

A process by which economies and cultures have been drawn deeper
together and have become more interconnected through networks of
trade and the rapid spread of technology

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17
Q

Structural
change

A

Where some businesses grow while others will shrink or close down e.g.
those in primary, secondary and tertiary sectors

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18
Q

International
trade barriers

A

A regulation or policy that restricts international trade, for example:
tariffs, quotas, customs duties, rules and regulations

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19
Q

Migration

A

The movement of people from one country to another to seek
employment or a better life

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20
Q

Trade
liberalisation

A

The reduction, and sometimes removal, of trade barriers between
countries

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21
Q

Transnationa
l companies

A

Companies that own or control production or service facilities outside the
country in which they are based

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22
Q

Domestic
subsidies

A

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

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23
Q

Import
quotas

A

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

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24
Q

Protectionism

A

Policies used by a government to protect domestic businesses by
making foreign owned products less attractive. Examples include tariffs,
quotas, subsidies and regulation

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25
Tariffs
A tax on imports to make them more expensive
26
Trade barriers
Measures designed to restrict trade
27
NAFTA
The North American Free Trade Area. Replaced by the USMCA.
27
ASEAN
The Association of Southeast Asian Nations
28
EU
The European Union, the most powerful trading bloc in the world. A single market that guarantees the free movement of people, goods, services and capital through member states
29
Single market
A market where almost all trade barriers between member have been removed and common laws or policies aim to make the movement of goods, services, capital and labour between countries easy
30
Trading bloc
A group of countries that trade freely with reduced or no tariffs and quotas on trade between businesses in these countries
31
Outsourcing
Moving a business function or department to a specialist external provider which may or may not be overseas
32
Pull factors
The conditions that exist elsewhere that appear to be more advantageous and may cause a business to move to those areas to take advantage of them
33
Push factors
The conditions that make a business’ current location less desirable and may cause it to leave and move elsewhere
34
Relocating
When a business moves to a new location. This can improve the use of premises and can lead to lower costs, such as lower rent
35
Risk spreading
Limit the various risk that a business faces eg avoiding over dependence upon one market
36
Saturated market
Where most of the customers who would buy a product already have it, or there is limited opportunity for growth
37
Disposable income
The amount of money that households have available for spending and saving after taxes have been paid
38
Ease of doing business
The number and severity of barriers a business faces when entering a new market/country. A high ranking means a business faces fewer barriers. Such barriers include dealing with/amount of government regulations, access to energy sources, tax regimes, employment law and enforcing contracts
39
Infrastructure
The systems and services that an economy needs to function effectively, these include transport links and communications
40
Natural resources
Materials or substances occurring in nature which can be exploited for economic gain e.g. raw materials like iron ore, coal or large forests or lakes
41
Subsidy
A payment to a producer to offset/lower the costs of production
42
Global merger
When companies from different countries combine assets and operations
43
Intellectual property
A produce that is a creation of the mind, such as invention, that the law protects from unauthorised use by others. It includes patents, copyrights and trademarks
44
Joint venture
When two or more businesses come together for a specific project. It is not a formal takeover or merger, and the businesses remain independent of each other
45
Patent
Legal rights to a monopoly on a new product or process. The innovator applies to the patent office. Businesses cannot legally copy the patented product without permission
46
Global competitiven ess
The extent to which a business or a geographical area such as a country, can compete successfully against rivals
47
Skills shortages
When employers cannot find enough workers with a particular skill
48
Ethnocentric/ domestic approach
Where a business approaches the world primarily from the perspective of its own culture. Products and marketing are not adapted
49
Geocentric/m ixed approach
A combination of both Ethnocentric and Polycentric marketing. Maintain and promote the global brand name, but tailor its products to local markets
49
Global localisation or glocalisation
A marketing strategy that adapts a global product or service to suit differing tastes and preferences in different regions e.g. ‘think global, act local’
50
Polycentric/I nternational approaches
Where a business considers each host country to be unique. Businesses adapts their marketing mix to these individual markets to maximise sales
51
Cultural diversity
Recognition that people across the globe have different interests and values
52
Global niche market
Smaller, specialised parts of a global market where there are specific customer needs in more than one country are not met by the global mass market
53
Balance of payments
A record of all transactions associated with imports and exports and all international capital movements
54
FDI flows
The transfer of funds by an MNC to purchase and acquire physical assets such as factories or machines
55
MNC
A multi national company i.e. a business that operates in more than one country
56
Transfer pricing
A system operated by MNC's. It is an attempt to avoid relatively high tax rates through the prices which one subsidiary charges another for components and finished goods
57
Child labour
The employment of children to undertake business activity
57
Emissions
A substance that is produced and sent out into the air that harms the environment
58
Exploitation of labour
When an agent takes advantage of another agent e.g.an employer abusing an employee
59
Supply chain consideration s
The way a business treats and monitors the labour involved in the production of raw materials, components and services
60
Sustainability
When a business is able to meet present needs without damaging or compromising the needs of the future
61
Waste disposal
The process of getting rid of unwanted materials
62
Competition policy
Government policy that exists to promote competition and ensure that firms don’t abuse their market power, do not attempt to fix prices or use pricing strategies to drive out competition
63
Tax avoidance
Using legal methods to reduce the amount of tax that a company pays
64
Tax evasion
Using illegal methods to avoid paying taxes that are owed
65
WTO
The World Trade Organisation that supervises world trading arrangements and trade negotiations and promotes the benefits of free trade

Business studies key terms (4 decks)

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