Theme 4.2 Global markets and business expansion➡️

What is outsourcing?

Moving a business function or department to a specialist external provider which may or may not be overseas.

What are pull factors?

The conditions that exist elsewhere that appear to be more advantageous and may cause a business to move to those areas to take advantage of them.

What are push factors?

The conditions that make a business’ current location less desirable and may cause it to leave and move elsewhere.

What is relocating?

When a business moves to a new location. This can improve the use of premises and can lead to lower costs, such as lower rent.

What is risk spreading?

Limit the various risk that a business faces e.g avoiding over dependence upon one market.

What is a saturated market?

Where most of the customers who would buy a product already have it, or there is limited opportunity for growth.

What is disposable income?

The amount of money that households have available for spending and saving after taxes have been paid.

What is the ease of doing business?

The number and severity of barriers a business faces when entering a new market/country. A high ranking means a business faces fewer barriers. Such barriers include dealing with/amount of government regulations, access to energy sources, tax regimens, employment law and enforcing contracts.

What is infrastructure?

The systems and services that an economy needs to function effectively. These include transport links and communications.

What are natural resources?

Materials or substances occurring in nature which can be exploited for economic gain. E.g raw materials like iron ore, coal or large forests or lakes.

What is a subsidy?

A payment to a producer to offset/lower the costs of production.

What is a global merger?

When companies from different countries combine assets and operations.

What is intellectual property?

A produce that is a creation of the mind, such as invention, that the law protects from unauthorised use by others. It includes patents, copyrights and trademarks.

What is a joint venture?

When two or more businesses come together for a specific project. It is not a formal takeover or merger, and the businesses remain independent of each other.

What is a patent?

Legal rights to a monopoly on a new product or process. The innovator applies to the patent office. Businesses cannot legally copy the patented product without permission.

What is global competitiveness?

The extent to which a business or a geographical area such as a country, can compete successfully against rivals.

What are skill shortages?

When employers cannot find enough workers with a parti