Edexcel Business A Level Revision

Pull factors - are those that attract a business to a global market. These may include lower levels of competition or an untapped market or customers. Pull factors are the opportunities a business may see for expansion into a foreign market. The factors are linked to the foreign market in which the businesses wishes to operate. Economies of scale are present when unit costs fall as output rises. Globalisation has meant a rise in opportunities for international businesses to reduce unit costs by increasing sales volumes to new and emerging markets, thus being able to buy the raw materials to make the products in bulk. Businesses have also moved production to new markets where costs such as wages are significantly cheaper than in their domestic market. Risk spreading is a benefit from moving into markers in order to reduce dependence on the home market. A wet summer in Britian does not worry Wall's ice cream as it sells ice cream in lots of overseas markets. Therefore they nega...

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...