Edexcel Business A Level Revision

Globalisation - the process of greater intergration and inter-connectedness between countries Trade liberalisation - Includes the removal or reduction of tariff obstacles such as duties and surcharges and non-tariff obstacles such as licensing rules, quotas and other requirements. Transnational Corporation - A business that is register and operates in more than one country at a time but selling the same products. Migration - The movement of people from one place to another International trade is increasing for a number of reasons: Reduction of international trade barriers/trade liberalisation Reduced cost of transport and communication Increased significance of transnational corporations Increased investment flows Migration within and between economies Growth of the global labour force Structural Change REDUCTION OF INTERNATIONAL TRADE BARRIERS/TRADE LIBERALISATION Countries impose trade barriers for many reasons. They include protecting local jobs, allowing new i...

Exports - Goods produced in one country and shipped to another country for future sale or trade. The sale of such goods adds to the producing nation's gross output. If used for trade, exports are exchanged for other products or services in other countries. Imports - Commodities, products or services brought in from abroad for sale. Balance of payments =  Exports - Imports. This explains the financial relationshio between the UK and rhe rest of the world. Currency Appreciaition - An increase in the value of one currency in terms of another Currency Depreciation - The loss of value of a country's currency with respect to one or more foreign reference currencies. Price elasticity of demand (PED)  - Measures the extent to which the quantity of a product demanded is affected by a change in price.  FACTORS AFFECTING EXPORTS AND IMPORTS   The impact of exchange rates Price elasticity The state of the world economy THE IMPACT OF EXCHANGE RATES ...

Business ethics - The moral principles that guide the way a business behaves Trade-off - is when one decision results in the loss of an alternative outcome, for each decision made there may be multiple trade-offs In business ethical standards play a crucial role in the decision-making: Used by individuals to make choices about how to behave They define acceptable conduct in business Should underpin decision making An ethical decision is one that is both legal and meets the shared ethical standards of the relevant business community Note: different countries and cultures have different attitudes to what constitutes acceptable ethical behaviour. Ethics in strategic decisions include: 1) Location decisions Ability to exploit workers Impact on the environment 2) Mergers, takeovers and retrenchment (reducing costs of the business e.g. staffing) Impact on workers Ability to exploit customers or control suppliers Transparency of deals 3) Corruption Dealing with auth...