Pearson Edexcel A Level Business – Key terms

Flashcards based on key terms for Pearson Edexcel A Level Business.

BRICS

Economies considered to be Brazil, Russia, India, China, and South Africa.

Economic growth

An increase in the GDP - value of output of goods and services produced in an economy over time.

Emerging economy

The economies of developing countries where there is rapid growth, but also significant risk.

GDP

Gross Domestic Product. Measures the output of goods and services in an economy over a period of time.

HDI

A composite index focusing on three basic measures of human development: Life expectancy at birth, mean years of schooling, expected years of schooling and standard of living.

Health

A key indicator of the level of development, includes life expectancy at birth, mortality, pollution exposure, and clean access to water.

Literacy

A key indicator of growth that looks at the percentage of adults that can read and write.

FDI

Foreign Direct Investment, when a business invests by setting up operations or buying assets in businesses in another country.

Exports

Goods or services that a firm produces in its home market but sells in a foreign market.

Globalisation

A process by which economies and cultures have become more interconnected through networks of trade and the rapid spread of technology.

International trade barriers

Regulations or policies that restrict international trade, like tariffs, quotas, and customs duties.

Transnational companies

Companies that own or control production or service facilities outside the country in which they are based.

Protectionism

Policies used by a government to protect domestic businesses by making foreign products less attractive.

Tariffs

A tax on imports to make them more expensive.

Trade barriers

Measures designed to restrict trade.

EU

The European Union, a powerful trading bloc that guarantees free movement of people, goods, services, and capital.

Outsourcing

Moving a business function to a specialist external provider which may be overseas.

Pull factors

Conditions in other areas that appear more advantageous and may attract businesses.

Push factors

Conditions that make a business's current location less desirable.

Relocating

When a business moves to a new location to improve efficiency and reduce costs.

Saturated market

A market where most customers who would buy a product already have it.

Disposable income

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

Infrastructure

The systems and services that an economy needs to function effectively, like transport and communication.

Intellectual property

A creation of the mind, such as an invention, protected by law from unauthorized use.

Joint venture

When two or more businesses come together for a specific project while remaining independent.

Tax avoidance

Using legal methods to reduce the amount of tax a company pays.

WTO

The World Trade Organisation that supervises global trading arrangements and promotes free trade.