Topic 4 business spec Flashcards
(21 cards)
Implications of economic growth for individuals and businesses
Trade opportunities for businesses
Employment patterns
Indicators of growth
- GDP per capita
- literacy
- health
- HDI
Factors contributing to increased globalisation
- liberalisation
- political change
- transport/ communication cost
- growth of TNCS
- FDI
- migration
- growth of labour force
- structural change
Forms of protectionism
- tariffs
- quotas
- government legislation
- domestic subsidies
Trading bloc examples
EU and the single market
ASEAN
NAFTA
Push factors for trade
saturated markets
competition
Pull factors for trade
economies of scale
risk spreading
possibility of offshoring and outsourcing
extending product life cycle
Assessment of a country as a market
disposable income
ease of doing business
infrastructure
political stability
exchange rate
Assessment of a country as a product location
cost of production
skills of workforce
infrastructure
location in trade bloc
government incentives
ease of doing business
political stability
natural resources
return on investment
Reasons for global
mergers or joint
ventures
-Spreading risk over different countries/regions
-Entering new markets/trade blocs
-Acquiring national/international brand names/patents
-Securing resources/supplies
- Maintaining/increasing global competitiveness
Competitive advantage through:
o cost competitiveness
o differentiation
Different marketing approaches
o domestic/ethnocentric
o mixed/geocentric
o international/polycentric
Cultural/social considerations for businesses:
o cultural differences
o different tastes
o language
o unintended meanings
o inappropriate/inaccurate translations
o inappropriate branding and promotion
Impact of MNCs on the local economy:
o local labour, wages, working conditions and job
creation
o local businesses
o the local community and environment
Impact of MNCs on the national economy:
o FDI flows
o balance of payments
o technology and skills transfer
o consumers
o business culture
o tax revenues and transfer pricing
Ethics to consider
- stakeholder conflicts
- pay and working conditions
- environmental considerations
- supply chain considerations
- marketing considerations
Environmental considerations (ethics)
o emissions
o waste disposal
Supply chain considerations (ethics)
o exploitation of labour
o child labour
Marketing considerations (ethics)
o misleading product labelling
o inappropriate promotional activities
Controlling MNCs
o political influence
o legal control
o pressure groups
o social media
