Unit 5: International Business
What is an Exporting Business? - -A business which sends good/services outside the UK e.g. Mini Cooper -What is an Importing Business? - -A business which brings goods/services into the UK e.g. Starbucks -What is a Multinational Enterprise? - -A business which operates in more than one country. -What is a Commodity? - -A raw material that can be bought and sold e.g. Gold or Coffee -What is Economy of Scale? - -Cost advantages as unit price will decrease when the output is increased e.g. buying in bulk. -What are the different Economies of Scale? - -1. Marketing 2. Management 3. Technological 4. Financial 5. Purchasing -What is Absolute Advantage? - -the ability to produce a good using fewer inputs than another producer -What is Comparative Advantage? - -the ability to produce a good at a lower opportunity cost than another producer -What are Fiscal Policy? - -the use of Government spending and tax policies to influence economic conditions e.g. during a recession, government may lower tax rates. -What are the reasons for a Business conducting Internationally? - -1. Growth 2. Economies of Scale 3. Technological Dominance 4. Fiscal Benefits 5. Access to New Markets 6. Market Leadership 7. Comparative Advantage
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- Subido en
- 28 de marzo de 2024
- Número de páginas
- 4
- Escrito en
- 2023/2024
- Tipo
- Examen
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- Preguntas y respuestas
