producing goods and services

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  • Created by: amyling
  • Created on: 23-05-16 20:26
waht are goods?
physical products
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what are services?
non-physical products
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what are the 2 main types of goods
consumer and producer goods
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outline production
to produce anything a business has to use resources that consists of ; land+labour+capital=product
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what are direct services
services that are offered to people eg. hairdressing
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what are commercial services?
services that are offered to businesses eg. business insurance
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what is the primary stage of production
its the 1st stage, this sector produces raw materials for other businesses to use
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what is the secondary stage of production?
the second satge of production, where raw materials are manufactured
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what is the tertiary stage?
lat stage of production, providing of a service to its customers
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what does interdependance?
relationship when each member is equally dependent on others
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what is speacilisation
when a business is in one particular sector and often specialise in just one area
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what is added value
a the product moves up the chain of prodution it increases in value
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what is job production?
one thing at a time, when one product finishes another can begin
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what is batch production?
make a limited number of identical product then stop and re organise and make a batch of something else
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what is mass production
as many as possible of an identical product, usually highly automated
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what is JIT
just in time stock control, stock is ordered just before it is needed
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what is bench marking
comparing the performance of one business or one factory with another and in particular the best in the world
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what is diversification?
it involves producing a different range of goods that may appeal to similar or totally different markets
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why do businesses diversify
increase sales from different products, gretaer profits, bigger repuation
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what is internal growth
expands an existing business
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advanatages of internal gowth
more profit/increasing sales, increase market shares, less risky, control growth
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disadvantages of internal growth
less customer satisiafcation, hire more employees, slow growth
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what is sales revenue?
the money value of the sale of products by a business
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what are fixed costs
costs which remain the same and do not change with output
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what are variable costs?
costs which vary with directly with the output of the business
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what are total costs
the sum of fixed costs and varibale costs
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what is break even
the point where total revenue = total costs
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what are imports?
goods and services brought from abroad with payments flowing out to foreign producers
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what are exports?
goods or services being sold to a foreign country with payments flowing into the country
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what is international trade
the process of importing and exporting goods?
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what is a balnace of payments?
records all trades between one country and all other countires, it considers the trade in goods, trade in services
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what is payment deficits?
where more is imported than exported
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what is globalisation
the process by whic business activities in different countries are becoming more and more connected to each other
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benefits of being in the eu
bigger market, common standards, free trade, free movemnet of goods, freedom of workers
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problems of the eu
environmental standards, a bigger marker, socail charter
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Card 2


what are services?


non-physical products

Card 3


what are the 2 main types of goods


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Card 4


outline production


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Card 5


what are direct services


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