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...

Growth - A common corporate objective which means expanding the sales revenue of a business, probably in the hope that profits will increase too. A business will aim to achieve greater market power, which gives it more control over its future, including a greater ability to increase prices. Greater dominance over customers means pricing control ; greater dominance over suppliers gives increasing power to keep purchasing costs down. This allows the business to gain a competitive advantage.