Edexcel A level business theme 4 Questions with Complete Solutions Rated A+

BRICS - Brazil, Russia, India, China & South Africa Indicators of growth - Statistics that show the extent to which a country is increasing in size Equation of GDP - National income/population Business specialisation - When businesses concentrate on producing specific goods Foreign direct investment - Investment made by a business from one country into the production of a business from another country Globalisation - The increased integration and interdependence of international economies Trade liberalisation - The process of removing barriers to trade to encourage free movement of goods Trade barriers - Any government actions that limit the free movement of goods between countries Protectionism - Policies imposed to restrict free movement of goods Tariffs - Taxes placed on imported goods Quotas - A physical limit on the volume of imports entering a country Embargoes - A total ban on imported products Subsidies - Government payments to domestic firms to reduce costs Trading blocs - Economic units formed when the government of a group of countries agree to trade freely Custom unions - Members agree to the removal of trade barriers and a common approach to trade barriers to countries outside the BLOC Common markets - Members agree to the removal of trade barriers as well the freedom of movement of factors of production Free trade areas - Members agree to either reduce or eliminate barriers for a select number of goods