HASS Test 2: Economics and Business

Economy

A system established to determine what to produce, how to produce and to whom production will be distributed.

Land

All natural resources used to produce goods and services

Labour

The physical and mental human effort used to produce goods and services

Capital economic resource

The man-made resources used to produce goods and services

Enterprise

Combining land, labour and capital to produce goods and services

Trade

Exchange of goods and services

Imports

Goods and services purchased from other countries

Exports

Goods and Services sold to other countries

Trade deficit

When a country imports more than it exports

Trade surplus

When a country exports more than it imports

Balance of trade

the difference between a country's total exports and total imports

Interconnectedness

When countries rely on each other, where the actions of one country affect others

Supply chain

The series of steps and processes involved in producing a product from raw materials to the final customer

Supply shock

an event that suddenly increases or decreases the supply of a good or service

Corporate social responsibility

When businesses take actions to positively impact society and the environment beyond their financial interests

Multinational corporation

A large business organisation that has a home base in one country and operates partially or wholly owned business in other countries

Transnational corporation

Large companies that operate in multiple countries, producing and selling goods across national borders

Globalisation

The process by which countries become increasingly connected though the exchange of goods, services, money, people and ideas across the world

Competitive advantage

When a business is able to produce goods and services better than its competitors

Innovation

New and original improvement to something such as technology

Environmental stewardship

The responsible management and care of the natural environment