Unit 5A Glossary
BTEC Level 3 Business Studies. Unit 5: International Business
Access to new markets - The new customers a business has the opportunity to sell to as a result of expanding internationally.
Additional revenue streams - The opportunities to earn money from different sources as a result of expanding internationally.
Associated organisations - Organisations that support with aspects of international trade such as marketing and logistics
Comparative advantages - The ability to produce a good at a lower opportunity cost than another producer
Currency exchange - converting one nation's money into another's
Developed economies - A classification for high-income industrialised nations, which have high living standards and the most technically developed infrastructure
Economic influence - The ability of large firms to change the economic performance of a country such as by reducing unemployment and improving the balance of payments
Efficiency savings - Reduced costs that occur when a business reduces its waste.
Emerging markets - countries in the process of rapid growth & industrialisation
Exchange rate - The measure of how much one currency is worth in relation to another.
Exporting organisations - Firms that sell goods and services to buyers in other countries
Exports - Goods and Services sold to other countries
External economies of scale - The cost benefits that all firms in the industry can enjoy when the industry expands such as improved infrastructure and skilled staff available
Factors influencing the choice of market - Type of product, operating costs, size of market, political stability and regulations.
Globalisation - The growing integration of the world's economies allowing for easier trade
Government agencies - permanent or semi-permanent agencies that oversee and regulate administration over certain areas
Government incentives - Concession given or measures taken by local or regional government to attract firms to set up in their country such as tax reductions and grants
Growth and diversification - The increase in size and variety of offerings a business has the opportunity to exploit as a result of expanding internationally.
Importing organisations - Firms and individuals that buy goods and services from sellers in other countries
Imports - goods and services purchased from other countries
Internal economies of scale - The cost benefits that an individual firm can enjoy when it expands such as purchasing, marketing, financial, technical and risk-bearing
Internal economies of scale - The reduction in average unit costs as a business expands its production.
International cooperation - When governments and businesses in different countries work together on common goals
International markets - buyers in other countries, including consumers, producers, resellers, and governments
International specialisation - Occurs when certain countries concentrate on the production of certain goods or services
International trade - Buying and selling goods and services between different countries
International transport systems - Infrastructure to move products between different countries such as shipping, rail, roads and air freight
Less developed economies - Low income economies that struggle with structural development due to lack of finance.
Logistics - those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost
Market leadership - The firm with the largest market share in a particular market
Mobility of labour - The ability of workers to change between jobs and geographical locations
Multinational corporation - An organization that manufactures and sells products in more than one country
Multinational organisations - Firms that produce and sell products in more than one country.
Political influence of major business - The ability of large firms to influence governments to change policy and regulations to suit their business objectives
Political stability - The degree to which a government is free from turmoil
Population movements - the movement of people from one country to another
Preferential tax rates - A reduction in the tax on profits that governments impose as an incentive to set up operations in their country
Protectionist economic policy - An economic policy that uses quotas and high tariffs to ensure that domestic firms have an edge when competing with foreign companies
Quota - A limit placed on the quantities of a product that can be imported
Regulations - The formal instructions that government issues for implementing laws.
Standard of living - Quality of life based on ownership of necessities and luxuries that make life easier.
Supply chain management - The coordination of the intermediaries involved in making a moving a product from production to consumer
Tariff - A government tax on imports
Technological dominance - Having access to sophisticated technology making it easier to set up sales and operations in overseas countries
Technology transfer - The acquisition of improved technology from developed nations by less developed nations as a result of globalisation
Trading blocs - Groups of countries with trading agreements to allow easier trade across their borders
