EDEXCEL A LEVEL BUSINESS EXAM LATEST UPDATE -THEME 4

EDEXCEL A LEVEL BUSINESS EXAM LATEST UPDATE -THEME 4 Economic growth - CORRECT ANSWER- An increase in a country's productive capacity Emerging economies - CORRECT ANSWER- The economies of developing countries where there is rapid growth, but also significant risk Human Development Index (HDI) - CORRECT ANSWER- A collection of statistics that are combined into an index, ranking countries according to their human development Literacy rate - CORRECT ANSWER- The percentage of adults (over 15) that can read and write Purchasing Power Parity (PPP) - CORRECT ANSWER- A measure of real growth the uses the price of purchasing a standardised basket of goods and services in order to compare prices across economies Comparative advantage - CORRECT ANSWER- The theory that a country should specialise in products and services that is can produce more efficiently than other countries Competitive advantage - CORRECT ANSWER- The idea that a business should specialise in any area (products, services, management, research etc.) where it can perform better than its competitors Division of labour - CORRECT ANSWER- Different workers specialising in different productive activities Exports - CORRECT ANSWER- Goods or services that a firm produces in its home market, but sells in a foreign market Foreign Direct Investment (FDI) - CORRECT ANSWER- Investing by setting up operations or buying assets in businesses in other country Imports - CORRECT ANSWER- Goods and services that are bought into one country from another International trade - CORRECT ANSWER- Exporting (selling abroad) and importing (buying from abroad) Specialisation - CORRECT ANSWER- A production strategy where a business focuses on a limited scope of products or services. This results in greater efficiency, allowing for goods and services to be produced at a lower cost per unit. Tariffs - CORRECT ANSWER- Taxes that are imposed on imports Foreign