Theme 4 business definitions Flashcards
(23 cards)
What is protectionism?
Government actions like tariffs or quotas to protect domestic businesses from foreign competition.
Foreign Direct Investment (FDI)
When a business invests directly in assets or operations in another country.
Multinational Corporation (MNC)
A business that operates and has facilities in more than one country.
Define globalisation
The growing interconnectedness of countries through trade, communication, and culture.
What is a quota?
A limit on the quantity of a product that can be imported into a country
What is a trading bloc?
A group of countries that agree to reduce or remove trade barriers (like tariffs and quotas) between each other to encourage trade.
Define Glocalisation
When a global business adapts its products or marketing to suit local cultures, tastes, and preferences.
What is an ethnocentric approach?
When a business uses the same marketing strategy or product in all countries, based on the idea that what works at home will work everywhere.
What is a ploycentric approach?
When a business changes its products or marketing to meet the needs and preferences of each local market it operates in.
Define geocentric approach
When a business uses a mix of global and local strategies, combining standardisation where possible and adapting where necessary.
Define a tariff
A tax placed on imported goods to make them more expensive and protect domestic businesses from foreign competition.
define off shoring
When a business moves part of its operations to another country, usually to reduce costs like labour or manufacturing expenses.
what is outsouring?
When a business hires another company to carry out tasks, services, or production that were previously done in-house, often to save time or money.
what is the first mover advantage?
When a business is first into a market and gains a strong position before competitors arrive
what is an Emring conomy?
A country with a fast-growing economy and improving living standards
What is a developing economy?
A country with low income levels, less industrialisation, and lower standards of living.
Definbe a developed economy
A country with high income, advanced technology, and strong infrastructure.
what is a subsidy?
Government financial support given to domestic businesses to lower their production costs and make them more competitive
what is trade liberastion
The process of removing barriers like tariffs and quotas to encourage free trade between countries.
Global Marketing
Selling products worldwide using a similar brand image and marketing strategy across different countries.
joint venture
When two businesses agree to work together on a specific project while remaining separate entities.
What is Intellectual Property
Legal protection for creations like inventions, designs, brand names, and artistic works.
