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...

Foreign Direct Investment (FDI) - The transfer of funds by a foreign business to purchase and acquire physical capital,  such as factories and machines. TRADE OPPORTUNITIES Opens up new markets which increases wealth in countries such as China who want western brands British provenance (" the place of origin or earliest known history of something. "). For example, fashion, finance, cars, arts, education etc. Additionally, BRICS countries can help with supplying materials and resources to British companies to help their provenance. Access to raw materials Greater movement of goods and services between countries Opportunities for cheaper production and therefore cheaper unit costs Greater investment opportunities such as Foreign Direct Investment (FDI) Increased profits for businesses. Trade opportunities will arise in new markets leading to an increase in demand and increased revenue and profit. The owners of businesses will see and increase in income e.g. through hi...

Traditionally, western countries such as the UK, Germany and the US have been markets of growth for businesses to target in terms of exports and international trade. Economies such as China and India have comparatively high levels of investment compared with western countries such as the UK, which brings with it jobs, infrastructure and new markets for businesses to expand into. Other developing countries such as Indonesia and Tanzania have large and growing populations, a good supply of relatively young workers and increased industrialisation of the economy. The emergence of Middle-Income Countries (MIC's) has lead to significant changes in the world economy: Countries such as Brazil, India and China have become significant global players in terms of all aspects of trade. The collapse of communism in Russia and other Eastern bloc states has opened up global markets significantly These countries have seen significant economic growth and they have utilised their abundant na...

Growth rate - is the rate at which a nation's gross domestic product (GDP) changes/grows from one year to another Gross Domestic Product - The total value of output (goods and services) produced in the UK in a particular time period, used to measure change in economic activity. Emerging economies - An economy with incomes that are growing but are still quite low. Such countries constitute approximately 80% of the global population and represent about 20% of the world's population. BRIC economies - The economies of Brazil, Russia, India and China, which are at a similar stage of economic development. Exchange rates - The price of one currency in terms of another Purchasing Power Parity (PPP) - Allows for differences in the cost of living in different countries, which gives more realistic comparisons of GDP According to the Office for National Statistics, the UK economy has grown by an average of 2.2% every year since 1956. However, emerging economies such as China an...