economics theme 3 Key terms
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- Created by: Harrison1998
- Created on: 11-06-17 17:45
Commodities
Are raw materials or semi manufactured products that are traded in bulk and are not recognisably originating from any particular business. examples include iron ore, cotton wheat and oil
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Common markets
have completely free trade internally and a single unified trade policy covering all member countries' trade with the rest of the world
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cooperate culture
is the set of important assumptions that are shared by people working in a particular business and influence the ways in which decisions are taken there
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cooperate social responsibility
means taking decisions that reflects all stakeholders interests into account
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developed countries
include most of Europe, Japan, USA and Australia. All have high incomes. through capital investment, they have acquired sophisticated production facilities
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developing countries
have relatively low standards of living, compared to developed countries. They may have small manufacturing sectors, many people may be engaged in agriculture
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diversifying
means selling more than one product, or the same market in two different markets. If one market shrinks, profits can still be made with other products in other markets
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emerging economies
are characterised by rapid economic growth. they have seen big increases in manufacturing output and standards of living are rising. some would still be described as poor countries e.g. india but other e.g. mexico are well on their way to being devel
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Ethical decision making
means following codes of practise that embody moral values. The objective is to do the right thing, acting with honesty and integrity
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EU
is a tarde bloc that has become a single market
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free trade areas
are groups of countries that trade completely freely with each other, with no trade barriers, but each member retains its own independent trade policies in relation to the rest of the world
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geocentric approach
sees the world as a potential market with both similarities and differences in domestic and foreign markets. an effort is being made to develop integrated would market strategies to gain the best from both of these strands
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gini coefficient
provides an objective measure of income inequality and can range from 0 and 1. A coefficient of 0 would mean income is shared equally between all individuals, whilst a coefficient of 1 would mean one person with all the money and everyone else woulr
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global market niches
are smaller, more specialised parts of a global market where customers in more than one country have particular needs that are not fully met by the global mass market
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glocalisation
combines the words globalisation and localisation to emphasise the idea that a global product or service is more likely to succeed if it is adapted to the specific requirements of local practises
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index numbers
can be created for anytime series data so that comparisons can be made more easily
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Interdependance
Refers to the way in which different economies have become increasingly reliant on one another through trade, capital movements and international agreements
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Lorenz Curve
Shows the extent of inequality in a particular economy.
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Market saturation
Occurs when it becomes impossible to expand sales further in that particular economy
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Nominal value
Means value in money terms at current prices. No allowance is made for inflation
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Non-governental organisations
A term applied to not-for-profit organisation that acts as a pressure group or as charities or both
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Off shoring
Means locating production in a foreign country. The objective may be to exploit cost savings, most often lower wage rates. Avoid trade barriers or to avoid trade barriers.
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Poverty trap
Is a situation in which someone would not be poorer or much richer if they had a job because they would no longer receive unemployment benefits from the government.
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Protectionism
is any government policy aimed at protecting the domestic economy from competing imports. Trade barriers can protect specific domestic industries and their employees by raising the prices of imported products. They will benefit but consumers doesn't.
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Purchasing power parity
Is a way of adjusting monetary values to allow for differences in prices between countries
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Quotas
Are physical limits on the level of specific imports in any one year
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Rationalisation
Means closing down parts of the firm that duplicate some functions. It may happen in a merger e.g. when one bank merges with another, if one branch is close to another one will be closed
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real values
Can be calculated to show Changes in values with the effects of inflation removed.
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Relative poverty
Affects people who do not have enough income to participate in normal life of the society in which they live in
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Social and Cultural differences
Individual society's and groups may have a distinct way of life so that will effect their choice of product and the way they do business with one another
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Supply chains
Are sequences of of processes that follow each other from start to finish in production
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Technology and skills transfer
Occurs when FDI brings new businesses into an economy and employees learn new skills that they take with them if they change jobs
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Trade diversion
Occurs when a trading bloc reduces imports form non-member countries to increase sells within the trading bloc
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Trade liberalisation
Refers to the process of reducing barriers to trade so that economies can mover gradually closer to free trade, which means there are no trade barriers at all.
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Trade unions
Represent employees in negotiations with employers
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Transfer pricing
occurs when one part of an MNC in one country transfers goods or services to another part in another country. The price charged is the transfer price. set at a level which reduces profit and therefore tax
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Other cards in this set
Card 2
Front
Common markets
Back
have completely free trade internally and a single unified trade policy covering all member countries' trade with the rest of the world
Card 3
Front
cooperate culture
Back
Card 4
Front
cooperate social responsibility
Back
Card 5
Front
developed countries
Back
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