Edexcel Business A Level Revision

Push factors - are those that force a business to leave the market in which they currently operate to look for new income streams in the future e.g. operating in a different market. Often businesses look to another country when operations in their current market become difficult. This can include a saturated market or products coming to the end of their product lifecycle. These are mainly reasons a business has to want to grow outside of the domestic country in which it currently operates. Saturated markets are the point at which a market is no longer generating new demand and decline in sales revenue for a firm's products, due to competition, decreased need, obsolescence or alternatives. Businesses will look for growth in overseas markets where there are similar characteristics, for example demographic trends and GDP per capita and where sales revenue will rise again. An example of a UK saturated market is the grocery market, where Tesco attempted to expand into China, Thaila...

Protectionism - is any attempt by a country, trade bloc or region to impose restrictions on the import of goods and services. Government legislation - legislation imposed by the government in order to both protect consumers and restrict imports. This might be complex legal forms, health and safety inspections and specific product specifications. Benefits of government legislation is that it allows domestic firms to flourish in the market, but it may provoke retaliation from another country is the ban is seen as unfair. Domestic subsidies - are payments to encourage domestic production by lowering their production costs and improve competitiveness. Low or no interest loans can be used to fund the dumping of products in overseas markets. Well-known subsidies include the Common Agricultural Policy in the EU, or cotton subsidies for US farmers and farm subsidies introduced by countries such as Russia. Advantages of subsidies include; The protection of local jobs and indust...

Tariffs - a tax or duty that raises the price of imported products. Protectionism - is any attempt by a country, trade bloc or region to impose restrictions on the import of goods and services. Dumping - Over-production in developed countries may be released into the markets of developing nations which undercuts domestic prices and domestic producers may be forced to leave the market. Balance of payments =  Exports - Imports. This explains the financial relationshio between the UK and rhe rest of the world. A country may use protectionist measures, because of a concern about trade imbalances (too many imports compared to few exports), to protect jobs or to protect politically sensitive industries such as shipbuilding. A tariff is a tax or duty that raises the price of imported products. The price rise is likely to reduce demand for the item and also encourage local entrepreneurs to produce more. For example, according to BBC News, in March 2016 the US imposed a 500% ...