________: two or more businesses agree to work closely together on a particular project and create a separate business division to do so.
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Globalization
________: growing integration of countries through increased freedom of global movement of goods, capital and people.
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Takeover
________: when a company buys over 50 % of the shares of another company and becomes the controlling owner often referred to as "acquisition.
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Protectionism
________: using barriers to free trade, such as tariffs and quotas, to protect a country's own domestic industries.
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Franchise
________: business that uses the name, logo and trading systems of an existing successful business.
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Strategic alliances
________: agreements between firms in which each agrees to commit resources to achieve an agreed set of objectives.
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Merger
________: agreement by shareholders and managers of two businesses to bring both firms together under a common board of directors with shareholders in both businesses owning shares in the newly ________ business.
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Economies of scale
reductions in a firms unit (average) costs of production that result from an increase in the scale of operations
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Diseconomies of scale
factors that cause average costs of production to rise when the scale of operation is increased
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Large-scale production
unit costs
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Internal growth
expansion of a business by means of opening new branches, shops or factories (also known as organic growth)
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External growth
business expansion achieved by means of merging with or taking over another business, from either the same or a different industry
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Merger
agreement by shareholders and managers of two businesses to bring both firms together under a common board of directors with shareholders in both businesses owning shares in the newly merged business
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14
Takeover
when a company buys over 50% of the shares of another company and becomes the controlling owner often referred to as "acquisition"
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15
Horizontal integration
integration with a firm in the same industry and at the same stage of production
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Forward vertical integration
integration with a business in the same industry but a customer of the existing business
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Backward vertical integration
integration with a business in the same industry but a supplier of the existing business
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Conglomerate integration
merger with or takeover of a business in a different industry
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Joint venture
two or more businesses agree to work closely together on a particular project and create a separate business division to do so
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20
Strategic alliances
agreements between firms in which each agrees to commit resources to achieve an agreed set of objectives
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21
Franchise
business that uses the name, logo and trading systems of an existing successful business
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22
Globalization
growing integration of countries through increased freedom of global movement of goods, capital and people
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23
Free trade
no restrictions or trade barriers exist that might prevent or limit trade between countries
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Protectionism
using barriers to free trade, such as tariffs and quotas, to protect a country's own domestic industries
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Multinational company/business
business organization that has its headquarters in one country, but with operating branches, factories and assembly plants in other countries
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Scale of operation
Maximum output that can be achieved using the available inputs (resources) this scale can only be increased in the long term by employing more of all inputs
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Economies of scale
Reductions in a firm's unit (average) costs of production that result from an increase in the scale of operations
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28
Diseconomies of scale
Factors that cause average costs of production to rise when the scale of operation is increased
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29
Internal growth
Expansion of a business by means of opening new branches, shops or factories (also known as organic growth)
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30
External growth
Business expansion achieved by means of merging with or taking over another business, from either the same or a different industry
New cards
31
Merger
Agreement by shareholders and managers of two businesses to bring both firms together under a common board of directors with shareholders in both businesses owning shares in the newly merged business
New cards
32
Takeover
When a company buys over 50% of the shares of another company and becomes the controlling owner often referred to as "acquisition"
New cards
33
Horizontal integration
Integration with a firm in the same industry and at the same stage of production
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34
Forward vertical integration
Integration with a business in the same industry but a customer of the existing business
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35
Backward vertical integration
Integration with a business in the same industry but a supplier of the existing business
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36
Conglomerate integration
Merger with or takeover of a business in a different industry
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37
Joint venture
Two or more businesses agree to work closely together on a particular project and create a separate business division to do so
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38
Strategic alliances
Agreements between firms in which each agrees to commit resources to achieve an agreed set of objectives
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39
Franchise
Business that uses the name, logo and trading systems of an existing successful business
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40
Globalization
Growing integration of countries through increased freedom of global movement of goods, capital and people
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41
Free trade
No restrictions or trade barriers exist that might prevent or limit trade between countries
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42
Protectionism
Using barriers to free trade, such as tariffs and quotas, to protect a country's own domestic industries
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43
Multinational company/business
Business organization that has its headquarters in one country, but with operating branches, factories and assembly plants in other countries
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44
Closer to main markets; lower costs of production; avoid import restrictions; access to local natural resources
Studied by 1 person
Note 
Flashcard (110)