Theme 4 Flashcards
(40 cards)
What are implications of economic growth for individuals and businesses? (3)
More disposable income
More demand
Less recruitment opportunites
What are common indicators of growth? (4)
GDP per capita
Literacy
Health
HDI
How does specialisation link to competitive advantage?
Focusing on what a country/business does best boosts efficiency and global success.
How does FDI link to business growth?
Foreign investment helps businesses expand and grow internationally.
What is protectionism?
Using barriers to reduce imports and protect local industries.
What are types of protectionist policies? (3)
Tariffs
Import quotas
Legislation/subsidies
What are examples of trading blocs? (2)
EU (Single Market)
ASEAN
How do trading blocs affect businesses?
Reduced barriers mean cheaper supplies and larger markets but also more competition
What are push factors that prompt trade? (2)
Saturated markets
High competition
What are pull factors that prompt trade? (2)
Economies of scale
Risk spreading
What are off-shoring and outsourcing?
Off-shoring = moving production abroad; Outsourcing = hiring another firm to do tasks.
How can selling in multiple markets help a product?
It extends the product life cycle by finding new customers.
What factors help assess a country as a market? (5)
Disposable income
Ease of doing business
Infrastructure
Political stability
Exchange rate
What factors help assess a country as a production location? (8)
Production costs
Skills and labour availability
Infrastructure
Location in trade bloc
Government incentives
Ease of doing business
Political stability
Natural resources
Why do firms do global mergers or joint ventures? (4)
Spread risk
Enter new markets
Acquire brands
Secure resources
How do exchange rate movements affect global competitiveness?
A weak currency makes exports cheaper; a strong currency makes imports cheaper.
What gives a firm competitive advantage globally? (2)
Cost competitiveness
Differentiation
How do skill shortages affect international competitiveness?
They reduce efficiency and increase labour costs.
What is glocalisation?
Adapting a global product to suit local markets
What are the 3 global marketing approaches? (3)
Ethnocentric: same product everywhere
Geocentric: mix of global and local
Polycentric: tailor to each country
How can Ansoff’s Matrix apply to global markets?
Firms can enter new markets with existing or new products to grow globally.
How is the marketing mix (4Ps) adapted globally?
Each element (Product, Price, Place, Promotion) is adjusted to fit local market needs.
Why is cultural diversity important in niche markets?
Different cultures have unique needs, preferences, and values.
What are features of global niche markets? (2)
Target a small, specific audience worldwide
High customer loyalty and specialist products
