Studied by 0 peopleJoint venture
________: two or more businesses agree to work closely together on a particular project and create a separate business division to do so.
Globalization
________: growing integration of countries through increased freedom of global movement of goods, capital and people.
Takeover
________: when a company buys over 50 % of the shares of another company and becomes the controlling owner often referred to as "acquisition.
Protectionism
________: using barriers to free trade, such as tariffs and quotas, to protect a country's own domestic industries.
Franchise
________: business that uses the name, logo and trading systems of an existing successful business.
Strategic alliances
________: agreements between firms in which each agrees to commit resources to achieve an agreed set of objectives.
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.
Economies of scale
reductions in a firms unit (average) costs of production that result from an increase in the scale of operations
Diseconomies of scale
factors that cause average costs of production to rise when the scale of operation is increased
Large-scale production
unit costs
Internal growth
expansion of a business by means of opening new branches, shops or factories (also known as organic growth)
External growth
business expansion achieved by means of merging with or taking over another business, from either the same or a different industry
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
Takeover
when a company buys over 50% of the shares of another company and becomes the controlling owner often referred to as "acquisition"
Horizontal integration
integration with a firm in the same industry and at the same stage of production
Forward vertical integration
integration with a business in the same industry but a customer of the existing business
Backward vertical integration
integration with a business in the same industry but a supplier of the existing business
Conglomerate integration
merger with or takeover of a business in a different industry
Joint venture
two or more businesses agree to work closely together on a particular project and create a separate business division to do so
Strategic alliances
agreements between firms in which each agrees to commit resources to achieve an agreed set of objectives
Franchise
business that uses the name, logo and trading systems of an existing successful business
Globalization
growing integration of countries through increased freedom of global movement of goods, capital and people
Free trade
no restrictions or trade barriers exist that might prevent or limit trade between countries
Protectionism
using barriers to free trade, such as tariffs and quotas, to protect a country's own domestic industries
Multinational company/business
business organization that has its headquarters in one country, but with operating branches, factories and assembly plants in other countries
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
Economies of scale
Reductions in a firm's unit (average) costs of production that result from an increase in the scale of operations
Diseconomies of scale
Factors that cause average costs of production to rise when the scale of operation is increased
Internal growth
Expansion of a business by means of opening new branches, shops or factories (also known as organic growth)
External growth
Business expansion achieved by means of merging with or taking over another business, from either the same or a different industry
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
Takeover
When a company buys over 50% of the shares of another company and becomes the controlling owner often referred to as "acquisition"
Horizontal integration
Integration with a firm in the same industry and at the same stage of production
Forward vertical integration
Integration with a business in the same industry but a customer of the existing business
Backward vertical integration
Integration with a business in the same industry but a supplier of the existing business
Conglomerate integration
Merger with or takeover of a business in a different industry
Joint venture
Two or more businesses agree to work closely together on a particular project and create a separate business division to do so
Strategic alliances
Agreements between firms in which each agrees to commit resources to achieve an agreed set of objectives
Franchise
Business that uses the name, logo and trading systems of an existing successful business
Globalization
Growing integration of countries through increased freedom of global movement of goods, capital and people
Free trade
No restrictions or trade barriers exist that might prevent or limit trade between countries
Protectionism
Using barriers to free trade, such as tariffs and quotas, to protect a country's own domestic industries
Multinational company/business
Business organization that has its headquarters in one country, but with operating branches, factories and assembly plants in other countries
Closer to main markets; lower costs of production; avoid import restrictions; access to local natural resources
Why become a multinational?
Note 
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