1
Q
How is a countrys growth measured in business
A
GDP
2
Q
Definition of globalisation
A
economic intergration of different contries through increasing freedomsnin cross boader movement of people, goods and servies, technology and finance
3
Q
what are the BRICS economies
A
Brazil
Russia
India
China
South Africa
4
Q
what are the MINT economies
A
Mexico
Indonesia
Nigeria
turkey
5
Q
what are the impacts of economic growth on businesses
A
- increased profits
- reduced COP
- increased trade opportunities
- increased investment
6
Q
what is the impact on individuals as a result of economic growth
A
- reduced unemployment
- increased incomes
- acess to improved infastruture
- acess to better services
7
Q
what are the indicators of growth
A
- GDP
- GDP per capita
- HDI
- Literacy
- Health
8
Q
what are the benefits to contries as a reusult of increased FDI
A
- increased economic growth
- increased job opportunities
- acess to better infastrutre expertise and individuals
9
Q
what is trade liberalisation
A
the removal or reduction of barriers to trade between different countries
10
Q
what is dumping
A
when a firm sells its products abroad at a significantly low price to flood the market and gain an unfair advantage due to its ability to exploit economies of scale
11
Q
what are the benefits of trade liberalisation
A
- increase in market size for firms
- economies of scale
- reduction in costs
12
Q
what are the negatives of trade liberalisation
A
- domestic firms struggle as barriers to entry for larger firms are lower
- dumping
13
Q
what are the reasons for globalisation
A
- growth of global labour force
- reduced trade barriers/trade liberalistion
- political change
- reduced transport amd communication costs
- increased importance of global commons
-increased migration
14
Q
what is the definition of protectionism
A
when a government seeks to protect domestic industries from forgien competition via tarrifs and import quotas
15
Q
what is a tarriff
A
a tax placed o an import into a country
16
Q
A
17
Q
what are the advantages of using tarrifs
A
- protection of infant industries
- increases government tax revenue
- reduction in dumping
18
Q
what are the disadvantages of using tarrifs
A
- increased cost for consumers
- reduced competition for domestic firms can casue quality to fall as a result of no competition
- reduction in consumer choice
19
Q
what are import quotas
A
a government limit on amount of a specific product allowed into a country
20
Q
what are the negatives of import quotas
A
- reduction in supply causing inflation
- tension between trading partners
- inefficent operation of domestic firms
20
Q
benefits of import quotas
A
- meet extra demand
- reduced unemployment
- easy to change if the economic climate changes
21
Q
what are some examples of other trade barriers that governments impose to protect domestic firm
A
ledgeslation and subsidies
22
Q
what is govenrment ledgeslation to protect domestic firms
give examples
A
laws and regulations set by a government to protect workers and firms
ban on chicken imports to uk from usa
23
Q
what are the advantages of government ledgeslation
A
protection of domestic firms
24
what are the negatives of government legeslation
- retaliation from other countries
-
25
what is a domestic subsidies
Payments are given to domestic businesses to help lower the costs of production
26
advantages of domestic subsidies
- lower costs of production for firms thus can result in lower prices for consumers
- increase compettiveness
27
disadvantages of domestic subsidies
- firms can become reliant on the sum of money therefore if its withdrawn they can face significant issues
28
what is the definition of a trading bloc
A trading bloc is a group of countries that form an agreement to reduce or eliminate protectionist measures between each other.
29
what are the 3 largest trading bloc
-NAFTA, EU, ASEAN
30
what are the benefits to being in a trading bloc
- wider market
- external tarrif walls
- improved infastruture
- free movment of labour
31
what arfe the negatives of being in a trading bloc
- increased competition
- rules ans regulations within the specific country
- retaliation
- ineficency
32
what is a push factor
factors that push a business to expand outside of its own country
33
examples of push factors in business
- saturated markets
- intense competition
34
what are pull factors
- factors encourage businesses to operate within markets abroad that present significant growth opportunities
35
examples of pull factors
- economies of scale
- risk spreading
36
what is offshoring
- process of a company moving part of the production process or all to another country
37
why would a firm use offshoring
to gain the benefits of:
- lower labour costs
- acess to raw materials
- become part of a trading bloc
- acess to skilled labour
38
what are the advantages of offshoring
- lower labour costs, EOS
- acesess to specialised suppliers
39
what are the disadvantages of offshoring
- employee and employer realationships
- high start up costs
- poor customer service
40
what is the definition of outsourcing
when a firm hires an external organisation to complete specific tasks or functions
41
what are the advantages of outsourcing
- specialised skills
- cheaper
- increase in labour productivity
42
what are the negatives of outsourcing
- damage to brand image as it is seen as unethical
- poor comunication
- quality may drop
43
what is the differnece between offshoring and outsourcing
- offshoring is moving area but within the same business, outsourcing is using a completley different firm
44
which models may be used to identiy the attraciveness of a market
- boston matrix
- PESTLE
45
what are the 5 factors to be considered when assessing a market
- ease of doing business
- infastruture
- political stability
- exchange rates
- levels of disposable income
46
what are the factors to consider before setting up production locations in other countries
- COP
- Ease of doing business
- political stability
- natural resources
- ROI
- If they are in a trading bloc
- infastruture
- labour supply
- government incentive
47
what is a global meger
When two firms from different countries permenantly combine to form one.
48
what is a joint venture
- when two firms join together to share knowledge or to work on a task for a specific peroid of time, NOT PERMENATNTLY
49
reasons for both joint ventures and global megers
- spreading risk
- entering new markets
- entering trading blocs
- growing their brand image
- acess to improved raw materials
- increased global competativeness
50
what are the benefits of joint ventures and global mergers
- economies of scale
- diversification of risk
- opportunities to enter new markets
51
what are the negatives of global megers and joint ventures
- DEOS, due to poor communication if firm grows to large
- high initial cost
- no gauruntee of goof ROI
- clash of cultures
- redundancies
52
what is the impact of currency appriciation on global competativeness
| advantages
If a business imports raw materials and components from abroad, they will now be cheaper
This will help the business to reduce its costs and possibly increase its profit margin
53
what is the impact of currency apriciation on global competativness
| disadvantages
If a business exports goods/services to foreign consumers, the goods will be more expensive for international customers
This may lead to a fall in sales as consumers now shift demand to domestic businesses
54
what is the impact of a currency depreciation on global competitiveness
| advantages
- exports become more competative asthey are cheaper to use
- domestic sucsess as its more expensive to export goods and services
55
what are the two things that cause a firm to have a competative advanatage
cost competitiveness and differentiation
56
what is cost competativeness
Cost competitiveness is when a business becomes one of the lowest-cost producers in its industry
57
how can a firm acheive being cost competative
- Increasing the productivity of its workforce
- Using machinery and technology efficiently
- Outsourcing
- Offshoring
58
what is differentiation
when a business makes the characteristics of its products/services different from those of its competitors
59
what is a method a business could use to differentiate
developing a strong brand and having a better design, better quality and better customer service
60
what is the definition of global competativness
the ability to perform better than rivals across markets in differnet countries
61
what are the factors that influence global competativeness
- exchange rate fluctuation
62
what is the definition of global marketing strategy
global marketing strategy that is the process of planning, producing and promoting a product in a global market
63
what is the definition of glocalisation
a strategy where businesses aim to reach customers globally and also take into consideration the needs of the local market
64
# at
what are the 3 types of global marketing strategies
- ethnocentric
- polycentric
- geocentric
65
what is the definition of ethnocentric marketing
A marketing approach where a company uses the same marketing strategy in all countries, with little or no adaptation to local cultures, tastes, or preferences.
66
what are the advantages of ethnocentric marketing
- economies of scale as products are standardised
- low cost no investment into new products overseas
67
what are the disadvantages of ethnocentric marketing
- not tailored to specific needs of the consumers so could result in low sales
- lead to bad reputation if different cultures are not looked at correctly
68
what is the definition of polycentric marketing approach
A marketing approach where a business adapts its marketing strategy to suit each country’s local culture, tastes, and consumer preferences.
69
what are the advantages of polycentric marketing
- boosted sales
- posotive brand image
- increased brand loyalty
70
what are the disadvantages of polycentric marketing
- increased costs via extra market research to identify new needs and wants
- extra costs incured in adapting the products
- harder to build a stronger global brand name and recognition as all products and branding are different
71
what is the definition of Geocentric marketing
A marketing approach that combines global standardisation with local adaptation to create a coordinated worldwide strategy.
72
what are the advantages of geocentric marketing
- sales increased due to tailored to countrys needs and wants
- increased brand loyalty in overseas markets
73
what are the disadvantages of geocentric marketing
costs incured with needing to meet requirements of the local market
74
how does Place apply to global markets
| (4ps)
best channel of distribution is required and the consideration of area for production
75
how does product apply to a global market
| (4ps)
- consider market they are operating in and choose a marketing strategy
76
how does price apply to global markets
| (4ps)
- identify disposable incomes of a country and set a PL accordingly
77
how dies promotion apply to global marketing
| (4ps)
adaptation of language etc
78
what is the definition of a global niche market
A small, specialised segment of customers worldwide with similar needs or preferences. Within different countries.
79
what are the features of global niche markets
- expert in production
- empahsis on quality
- innovation
- profit is prioritised over market share
- good customer service
80
what is the definition of cultrual diversity
The existence of a variety of different cultures within a country, market, or workforce.
81
what are the considerations for firms as a result of cultrul diversity
- differences
- unintened meanings
- languages
- incorrect translations
- differnet tastes
- religion
82
what are the advantages of MNC's on the local economy
- job creation
- competative wages
- improved working conditions
- increased tax revenue for gov due to coportation tax
83
what are the disadvantages of MNC's on the local economy
- exploitation of workers if regulations are not put in place
- usually set up in low income areas
84
what are the advantages of MNC's on the local businesses
- boost of economy to people
- multiplier effect
- opportunities for joint ventures and partnerships with MNCs that seek to gain knowldge of locl area
85
what are the disadvantages of MNC's on the local businesses
- reduction in the supply of labour
- price out local firms due to EOS
86
what are the advantages of MNC's on the environment and local community
- job creation
- improved infastruture
87
what are the disadvantages of MNC's on the environemnt and local community
- destruction of land
- polloution
88
what are the impacts of MNC's on a country as a whole
- Increased FDI flows
- BOP improvement
- Increased control of business
- increased tax revenue
89
what are inward FDI flows
Investment coming into a country from foreign businesses.
90
what are outward FDI flows
Investment made by businesses from one country into other countries.
91
what is the definition of business ethics
Business ethics refers to the principles and norms that govern business behaviour
92
what are the main types of ethical considerations
- stakeholder conflics
- marketing considerations
- supply chain considerations
- environmental considerations
93
what are the 4 ways of controling MNC's
- political influence
- legal control
- pressure groups
- social media
94
Business
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