Edexcel Business A Level Revision

Foreign Direct Investment - is investment made by a business or other entity from one country into the production capacity of a business or other entity from another country e.g. factories Inward FDI / Horizontal FDI - An investment into a country involving an external or foreign company either investing in or purchasing the goods of a local economy. Outward FDI / Vertical FDI - A business strategy in which a domestic firm expands its operations to a foreign country via an investment, merger/acquisition or expansion of an exisiting foreign facility. FDI can be used by businesses to achieve the aim of growth. Countries try to attract FDI using strategies such as lower levels of corporation tax, subsidies for the building of factories, and investment in infrastructure such as roads, ports and airports. It was originally believed that FDI occurred due to differing interest rates in different countries. Businesses would transfer money globally to where they could obtain the highest...

Market Segmentation - the process of dividing a market into smaller sections which contain customers with similar needs and wants Market segmentation splits up a market into different types of segments to enable a business to better of target it's products to the relevant customers. Segments are usually measured in terms of sales volume or valu e Segmentation is possible because in almost all markets there are differences in factors such as: • Customers needs and wants • How customers buy • Location of customers • Knowledge & experience of customers Recognising and understanding these differences are the first Steps in an effective approach to market segmentation. ☆MAIN BASES OF SEGMENTATION☆ DEMOGRAPHIC > dividing a market into segments based on demographic variables such as age, gender, family, lifestyle, religion, nationality, ethnicity, occupation, Socio-economic group. BEHAVIOURAL > dividing a market into segments based on the different ...