Unit 3 A2 Economics and Business

1. Groups of countries that trade completely freely with each other, with no trade barriers, but each member country retains its own independent trade policies in relation to the rest of the world (4, 5, 5)
5. Combining with another company on a collaborative basis (6)
6. Locating production in a foreign country. The objective is to exploit cost savings, most often lower wage rates (10)
10. Taxes on imported goods. They make the price higher so sales will generally be lower (7)

2. When it becomes impossible to expand sales further in that particular market. If the poduct is durable (a washing machine) it may still be possible to sell replacement machines (6, 10)
3. Someone who has a vested interest in a particular business (12)
4. Exists if the real resource cost of a product is lower in one country than other (8, 9)
7. After a merger or takeover, the performance of a combined enterprise will exceed that of its previously seperate parts. 2+2=5 (7)
8. Threats that may or may not occur, but can be quantified using probabilities (5)
9. Physical limits on the level of specific imports in any one year (6)

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