Emerging economies: Imports - Brought into the country
THEME 4
Large GDP growth
Large amounts of poverty
Exports - Sold to other countries
THEME 4.1
Poor infastructure FDI (Foreign direct investment)
Inward FDI = Leads to jobs, investment,
Developed economy: spending
Smaller GDP growth Outward FDI = Could generate oppourtunity
Higher income levels
Much better infastructure 4.1.5 - Trading blocs
Trading blocs are group of
4.1.4 - Protectionism
countries inside an external
4.1.3 - Factors contributing to Protectionsim is imposing trade
tariff wall (no tariffs or
increased gloabalisation barriers and restrictions on trade
quotas, increased ease of
Factors: (tarrifs, quotas, legilation, subsidies)
trade)
Removal of trade barriers
Tarrifs - taxed on imports WHY?
Quotas - limits on imports Domestic industries provide
Political change domestic jobs
Reduced costs of transport and Domestic jobs increae domestic Miss Orloff
communication incomes
Increased significance of
transnational companies
Increases spending in local
economies and tax revenue THEME 4
SUMMARY
Increased FDI and migration
Theme 4.1 - globalisation
4.2.1 - Conditions that prompt trade
Pull factors - Attractive features of THEME 4.2 Theme 4.2 - global markets and business expansi
international markets Theme 4.3- global marketing
Costs Theme 4.4 - multinational corporations
Economies of scale 4.2.2- Assessment of countries as a
Risk spreading market
This is when considering where to locate,
Push factors - Reasons why it makes businesses must consider differentfactors
sense to leave a domestic market when hoosing a market to when they are
Saturated markets choosing a production location 4.2.5 - Global competitiveness
Competition Disposable income 4.4.1 - Impact
Exchange rates and competitve advantage
Projected income growth MNC is a multinatio
effect how competitie business is on a lobal
Ease of doing business Company with oper
scale
Outsourcing = Getting somone else to do Exchange rate multiple countries
something for you Existing competition Exchange rates:
Impact of MNC on e