1
Q
what is an emerging economy?
A
an economy with high growth rates but low gdp per capita
2
Q
what is globalisation?
A
the increasing interconnectedness of nations around the globe
3
Q
what are BRIC economies?
A
- brazil
- russia
- india
- china
rapidly growing economies in a trading bloc
4
Q
what are MINT economies?
A
- mexico
- indonesia
- nigeria
- turkey
rapidly growing trading bloc
5
Q
give 3 indicators of development in an economy
A
- hdi
- gdp per capita
- literacy rate
6
Q
define economy
A
the state of a country in terms of production, consumption and the flow of money
7
Q
what is foreign direct investment (FDI)?
A
the purchase of a foreign company or setting up production in another country
the movement of cash from one country to another via business venture
8
Q
give 5 factors which contribute to globalisation
A
- reduced cost of transport
- increased FDI
- migration
- trade liberalisation
- political change
political change due to summits and global organisations
9
Q
what is trade liberalisation?
A
the process by which international trade us made easier through relaxation of traiffs and barriers
10
Q
give 3 pros of trade liberalisation for a country
A
- lower prices
- increases quality of g/s
- higher employment
11
Q
give 3 drawbacks of trade liberalisation
A
- increased competiton - squeezes P.Ms
- employment likely only temporary
- pollution + over cultivation
12
Q
what is protectionism?
A
the practice of shielding a countries domestic industry from foreign competition via taxation, quotas and legislation
13
Q
give 3 reasons for protectionism
A
- human nature
- protect domestic interest
- poor foreign relations
14
Q
what is a tariff?
A
a tax placed on an import to raise its prices and reduce its demand
15
Q
give 3 reasons for tariffs
A
- raise tax revenues
- environmental reasons
- protectionism
16
Q
give 3 effects of tariffs
A
- raises tax revenue
- reduction in demand for imports
- foreign job losses
17
Q
give 3 benefits of tariffs
A
- cheaper domestic goods
- job security
- leverage in trade deals
18
Q
give 3 drawbacks of tariffs
A
- offputs customers
- retaliation
- demand may remain due to addiction
19
Q
what is an import quota?
A
a physical limit on the quantity of goods allowed to be imported
increases market share for domestic firms
20
Q
give 3 benefits of import quotas
A
- protects domestic jobs
- bargaining power for trade
- more protective than tariffs in growing markets
21
Q
give 3 drawbacks of import quotas
A
- retaliation
- difficult to measure
- hard for trading blocks to divide the quota fairly
22
Q
what is government legislation?
protectionism
A
setting laws to reduce the imports of certain goods such as fakes and unsafe goods
for example the CE stamp
23
Q
give a benefits of government legislation
A
very powerful in preventing fake imports
24
Q
give a drawback of government legislation
A
not every import can be checked
25
what is a subsidy?
| protectionism
a sum of money paid by the government to a firm to help keep the price of that particular good low, protecting it from cheaper imports
26
give 3 pros of domestic subsidys
1. incentivised increased production - creating jobs and tax
2. gives domestic firms competitive advantage in exports
3. economies of scale from extra production
27
give 2 drawbacks of government subsidys
1. retaliation
2. encourages inefficient business activity
28
give 3 reasons why quotas are better than tariffs
1. certain fixed limit on imports
2. limits domestic competition
3. physical guarantee
29
give 3 reasons why tariffs are better than quotas?
1. generates govt revenue
2. quotas cannot check everything
3. easier management
30
what are push factors?
factors which push a firm out of trading in a market
31
give 2 examples of push factors
1. saturated markets
2. low profitability
32
what is a domestic market?
a market in the home country of a firm
33
what is a pull factor?
something attracting a firm into trading in a foreign market
34
give 2 examples of a pull factor
1. economies of scale
2. risk spreading
35
what is offshoring?
when a business relocates some of its processes to another country
36
what is outsourcing?
contracting processes to a third party business
37
give 3 benefits of offshoring
1. lower wage levels
2. tax benefits
3. trading blocs
38
give 3 benefits of outsourcing
1. may be a lower cost
2. gain expertise
3. enhanced focus on other areas
39
what is a trading bloc?
a group of countries which join to eliminate barriers of trade between them
40
give 3 pros of trading blocs
1. access to larger markets
2. economies of scale
3. increased labour supply
41
give 2 cons of trading blocs
1. increased competiton
2. reduced incentives for domestic firms to become more efficiency
42
give 3 reasons for the growth of the eu
1. economic growth
2. gain peace
3. increased labour supply - free movement
43
what is ASEAN?
the trading bloc of south asian nations
| thailand, phillipines, cambodia, vietnam etc
44
give 3 factors impacting a countries attractiveness to sell in
1. level of disposable income
2. ease of doing business
3. infrastructure
45
what is ease of doing business?
a ranking on how easy a market is to access
| e.g regulation, permits
46
give 3 factors to assess a country for being a production location as
1. cost of production
2. skills and availability of work force
3. infrastructure
47
what is joint venture?
when two parties temporarily join for a commerical project
48
what is a merger?
when 2 businesses become one permanently
49
give 4 benefits of joint ventures
1. shared risk
2. access to new markets
3. increased capacity accelerates growth
4. access to trading blocs
50
give 3 drawbacks of joint ventures
1. loss of control
2. conflict in objectives (50% of them fail)
3. culture clashes
51
what is a patent?
a govt authority or license to sell or market a product which others cant
52
what are the two strategies in international marketing?
1. glocalisation
2. global marketing
53
what is global marketing?
products and marketing aren't different between countries
| only fine tuning e.g price, promotion
54
give 3 pros of global marketing
1. e.o.s in production
2. strong brand reputation
3. brand power over entrants
55
give 2 cons of global marketing
2. differences in competitive environment
3. legal differences
56
what is glocalisation?
products are adapted to suit local market needs
57
give 3 pros of glocalisation
1. access to culturally different markets
2. more effective competing
3. higher demand
58
give 3 cons of glocalisation
1. higher competition
2. slow to change
3. no access to e.o.s
59
what is a niche market?
small specialised markets for particular g/s
60
what is cultural diversity?
involving people from a range of different social or ethnic backgrounds
61
what is cultural sensitivity?
understanding people have different interests and values
| important in marketing
62
what is a global niche market?
a very small market in countries combining to make a market large enough to operate in
63
give 3 benefits of operating in a global niche market
1. less competition
2. charge higher prices
3. reduced risk due to brand loyalty
64
give 3 cons of operating in a global niche market
1. too many customers attract larger firms
2. difficult communication
3. reduced e.o.s
65
what are cultural factors?
beliefs, traditions and values held by a country
66
what are social factors?
the social norms, development and wealth of a country
67
what are high context countries?
countries which operate through trust, personal relations with slow negotiations
68
what are low context countries?
countries which get down to business first, value expertise and agree through contracts. fast negotiations
69
what is an mnc?
a business which operates in more than 1 country
70
give 4 positive effects of mncs
1. creates employment
2. increase standard of living
3. improves b.o.p
4. improves infrastructure
71
give 4 negatives of mncs
1. profit leakage
2. exploitation
3. widens the poverty gap
4. corruption
72
what is FDI?
the investment from a firm into business operations in another country
73
what are ethics?
moral principles which govern the difference between right and wrong
74
give 3 pros of operating ethically
1. enhanced brand rep
2. greater customer loyalty
3. improved employee retention
75
give 3 controlling factors of mncs
1. political influence
2. pressure groups
3. legal control
| however may be corrupt
75
give 3 pros of operating unethically
1. reduced c.o.p
2. cheaper tax
3. economies of scale
76
what is the world bribery index?
a measure of corruption to evaluate whether an mnc benefits a country
77
what is polycentric global marketing?
products are adapted to the local market to increase rev
78
what is ethnocentric global marketing?
products are standardised to all markets to keep costs low
79
what is crowding out?
when mncs reduce the market share of local firms, causing them to leave the market
| e.o.s, brand rep etc
80
what are regulatory laws?
how strict a nations laws are at controlling business activity. e.g environmetal, labour, tax.
| will increase benefits however may discourage investment
81
what are the 4 ways of controlling MNCS?
1. pressure groups
2. legal control
3. political influence
4. social media
82
what is dumping?
MNCs export goods at a lower price, flooding the market, below c.o.p
83
why might a firm expand internationally using franchising?
1. to spread risk to other people
2. to gain local knowledge and skill
| firms may not understand local markets, franchising reduces probability
## Footnote
of failiure as local owners have a higher level of knowledge.
a level business
flashcards
Decks in class (10)
# Cards
