Edexcel Business Paper 1

by @void

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May 12, 2026

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296 total

01
How does competition affect the market?
It influences prices, product quality, innovation, and customer choice.
02
What's the difference between risk and uncertainty?
Risk is quantifiable and insurable; uncertainty is unquantifiable and unpredictable.
03
What is product orientation?
A business approach focusing on making products first, then finding a market.
04
What is market orientation?
A business approach focusing on identifying customer needs first, then developing products.
05
What is primary market research data?
New data collected directly from original sources for a specific purpose.
06
What is a mass market?
A market for products that appeal to a wide range of customers.
07
What is a niche market?
A small, specific segment of a larger market with unique needs.
08
What is market size?
The total volume or value of sales in a specific market.
09
What is market share?
The proportion of total market sales held by one business.
10
What are brands?
Names, terms, designs, symbols, or features that identify one seller's goods.
11
What are dynamic markets?
Markets that are constantly changing due to external factors.
12
What is online retailing?
Selling products or services directly to consumers via the internet.
13
How do markets change?
Through innovation, social trends, technology, and economic shifts.
14
What is the relationship between innovation and market growth?
Innovation often leads to new products, processes, or services, driving market growth.
15
Why is adapting to change important in markets?
Businesses must adapt to remain competitive and meet evolving customer needs.
16
What is secondary market research data?
Existing data that has already been collected by someone else for another purpose.
17
What is quantitative data?
Numerical data that can be measured and statistically analyzed.
18
What is qualitative data?
Non-numerical data that provides insights into opinions, reasons, and motivations.
19
How is market research used to identify and anticipate customer needs and wants?
It gathers information directly from customers to understand their preferences and future desires.
20
How is market research used to quantify likely demand?
It uses numerical data to estimate the potential sales volume for a product or service.
21
How is market research used to gain insight into consumer behaviour?
It studies how individuals make decisions to spend their available resources.
22
What are the limitations of market research?
It can be costly, time-consuming, inaccurate, or biased, leading to poor decisions.
23
What is sample size in market research?
The number of individuals or items selected from a population for a study.
24
What is bias in market research?
Systematic error in data collection or interpretation, leading to unrepresentative results.
25
How are websites used to support market research?
For online surveys, data collection, competitor analysis, and gathering customer feedback.
26
How is social networking used to support market research?
For monitoring public opinion, engaging with customers, and gathering qualitative insights.
27
How are databases used to support market research?
For storing, organizing, and analyzing large volumes of customer and market data.
28
What is market segmentation?
Dividing a market into distinct groups of buyers with different needs or characteristics.
29
What is market mapping?
A visual tool to plot competitors and products based on two key characteristics.
30
What is competitive advantage of a product or service?
A feature that allows a business to perform better than its rivals.
31
What is the purpose of product differentiation?
To make a product stand out from competitors, appealing to specific customer segments.
32
What does adding value to products/services mean?
Enhancing a product or service to increase its perceived worth to customers.
33
What factors lead to a change in demand?
Prices of substitutes/complements, incomes, tastes, advertising, demographics, shocks, seasonality.
34
How do changes in prices of substitutes and complementary goods affect demand?
Substitute price rise increases demand; complement price rise decreases demand.
35
How do changes in consumer incomes affect demand?
Higher income generally increases demand for normal goods, decreases for inferior goods.
36
How do fashions, tastes and preferences affect demand?
Products aligned with current trends see increased demand; outdated ones see decreased demand.
37
How do advertising and branding affect demand?
Effective advertising and strong branding can increase consumer awareness and desire, boosting demand.
38
How do demographics affect demand?
Changes in population size, age, gender, or ethnicity can shift demand patterns.
39
What are external shocks that can change demand?
Unforeseen events like natural disasters, pandemics, or major political changes.
40
How does seasonality affect demand?
Demand for certain products fluctuates predictably with seasons or holidays.
41
What factors lead to a change in supply?
Costs of production, new technology, indirect taxes, government subsidies, external shocks.
42
How do changes in the costs of production affect supply?
Increased costs reduce supply; decreased costs increase supply.
43
How does the introduction of new technology affect supply?
New technology often improves efficiency, leading to an increase in supply.
44
How do indirect taxes affect supply?
Indirect taxes increase production costs, leading to a decrease in supply.
45
How do government subsidies affect supply?
Subsidies reduce production costs, leading to an increase in supply.
46
What are external shocks that can change supply?
Unforeseen events like natural disasters, political instability, or supply chain disruptions.
47
What is the interaction of supply and demand?
The forces that determine market prices and quantities, moving towards equilibrium.
48
What is the purpose of drawing and interpreting supply and demand diagrams?
To visually represent how changes in supply or demand affect market prices and quantities.
49
How is price elasticity of demand calculated?
Percentage change in quantity demanded divided by percentage change in price.
50
How are numerical values of price elasticity of demand interpreted?
Greater than 1 is elastic, less than 1 is inelastic, equal to 1 is unit elastic.
51
What factors influence price elasticity of demand?
Availability of substitutes, necessity, proportion of income, time period.
52
Why does price elasticity of demand matter to businesses?
It helps businesses make informed pricing decisions to maximize revenue.
53
What is the relationship between price elasticity of demand and total revenue?
If demand is elastic, price cuts increase revenue; if inelastic, price hikes increase revenue.
54
How is income elasticity of demand calculated?
Percentage change in quantity demanded divided by percentage change in income.
55
How are numerical values of income elasticity of demand interpreted?
Positive for normal goods, negative for inferior goods, greater than 1 for luxury goods.
56
What factors influence income elasticity of demand?
Whether a good is a necessity, luxury, or inferior good.
57
Why does income elasticity of demand matter to businesses?
It helps predict how sales will change with economic growth or recession.
58
What are the elements of the design mix?
Function, aesthetics, and cost.
59
What is 'function' in the design mix?
How well a product performs its intended purpose.
60
What is 'aesthetics' in the design mix?
The visual appeal and sensory qualities of a product.
61
What is 'cost' in the design mix?
The expenses involved in producing and distributing a product.
62
How do changes in the design mix reflect concern over resource depletion?
Designing for waste minimisation, re-use, and recycling.
63
How do changes in the design mix reflect ethical sourcing?
Using materials and components obtained in a socially and environmentally responsible way.
64
What are types of promotion?
Advertising, sales promotion, public relations, personal selling, direct marketing.
65
What are types of branding?
Manufacturer brands, own-label brands, individual brands, family brands, corporate brands.
66
What are the benefits of strong branding?
Added value, ability to charge premium prices, reduced price elasticity of demand.
67
What are ways to build a brand?
Unique selling points, advertising, sponsorship, social media, differentiation.
68
How do unique selling points (USPs)/differentiation help build a brand?
They make a product distinct and memorable, creating a unique brand identity.
69
How does advertising help build a brand?
It creates awareness, communicates brand values, and reinforces brand image.
70
How does sponsorship help build a brand?
It associates the brand with positive events or figures, enhancing its image.
71
How is the use of social media important for brand building?
It allows direct engagement with customers, builds community, and spreads brand messages.
72
How do changes in branding and promotion reflect viral marketing?
Creating content that encourages users to share it widely, spreading brand awareness.
73
How do changes in branding and promotion reflect social media trends?
Utilizing platforms for direct engagement, influencer marketing, and targeted campaigns.
74
How do changes in branding and promotion reflect emotional branding?
Creating a deep connection with consumers by appealing to their feelings and values.
75
What are types of pricing strategy?
Cost plus, price skimming, penetration, predatory, competitive, psychological.
76
What is cost plus pricing?
Calculating a mark-up on the unit cost to determine the selling price.
77
What is price skimming?
Setting a high initial price for a new, innovative product.
78
What is penetration pricing?
Setting a low initial price to quickly gain market share.
79
What is predatory pricing?
Setting very low prices to drive competitors out of the market.
80
What is competitive pricing?
Setting prices based on what competitors are charging.
81
What is psychological pricing?
Setting prices to appeal to consumers' emotional responses, e.g., £9.99.
82
What factors determine the most appropriate pricing strategy for a particular situation?
USPs, price elasticity, competition, brand strength, product life cycle, costs, profit.
83
How do the number of USPs/amount of differentiation affect pricing strategy?
More USPs allow for higher prices; less differentiation requires competitive pricing.
84
How does price elasticity of demand affect pricing strategy?
Elastic demand suggests lower prices; inelastic demand allows for higher prices.
85
How does the level of competition in the business environment affect pricing strategy?
High competition often leads to competitive or predatory pricing; low competition allows higher prices.
86
How does the strength of brand affect pricing strategy?
Strong brands can command premium prices due to perceived value and loyalty.
87
How does the stage in the product life cycle affect pricing strategy?
Skimming for introduction, competitive for maturity, penetration for growth.
88
How do costs and the need to make a profit affect pricing strategy?
Prices must cover costs and provide a sufficient profit margin.
89
How do changes in pricing reflect online sales?
Facilitates dynamic pricing, personalized offers, and rapid price adjustments.
90
How do changes in pricing reflect price comparison sites?
Increases price transparency and competition, forcing businesses to be more competitive.
91
What are distribution channels?
The routes through which products move from producer to consumer.
92
How do changes in distribution reflect online distribution?
Direct sales via e-commerce, digital downloads, and global reach without physical stores.
93
How do changes in distribution reflect changing from product to service?
Focus on delivering experiences or access rather than physical goods, often digitally.
94
What is the product life cycle?
The stages a product goes through from introduction to withdrawal from the market.
95
What are product extension strategies?
Modifying the product, finding new uses, or targeting new markets to prolong its life.
96
What are promotion extension strategies?
Changing advertising, sales promotions, or branding to revitalize interest in a product.
97
What is the Boston Matrix?
A tool for analyzing a product portfolio based on market share and market growth.
98
What is a product portfolio?
The range of products or services offered by a business.
99
What are appropriate marketing strategies for mass markets?
Undifferentiated marketing, focus on broad appeal, low prices, extensive distribution.
100
What are appropriate marketing strategies for niche markets?
Highly targeted marketing, specialized products, premium pricing, direct distribution.
101
What is Business to Business (B2B) marketing?
Marketing products or services to other businesses.
102
What is Business to Consumer (B2C) marketing?
Marketing products or services directly to individual consumers.
103
How do businesses develop customer loyalty?
Through excellent service, rewards programs, personalized communication, and consistent quality.
104
What does 'staff as an asset' mean?
Viewing employees as valuable resources whose development contributes to business success.
105
What does 'staff as a cost' mean?
Viewing employees primarily as an expense to be minimized.
106
What is a flexible workforce?
A workforce that can adapt to changes in demand, skills, or working patterns.
107
What is multi-skilling?
Training employees to perform a variety of tasks, increasing versatility.
108
What are part-time and temporary staff?
Employees working fewer hours or for a limited duration, offering flexibility.
109
What are flexible hours and home working?
Arrangements allowing employees to choose their work times or location, increasing flexibility.
110
What is outsourcing in staffing?
Contracting out non-core business activities to external providers.
111
What's the distinction between dismissal and redundancy?
Dismissal is due to employee conduct/performance; redundancy is due to job no longer existing.
112
What is the individual approach to employer/employee relationships?
Negotiating terms and conditions directly with each employee.
113
What is collective bargaining?
Negotiating terms and conditions between employers and employee representatives (unions).
114
What is the recruitment and selection process?
The steps involved in attracting, assessing, and hiring new employees.
115
What is internal recruitment?
Filling job vacancies with existing employees from within the organization.
116
What is external recruitment?
Filling job vacancies by hiring candidates from outside the organization.
117
What are the costs of recruitment, selection and training?
Advertising, interviews, assessment centers, induction, on-the-job, off-the-job training expenses.
118
What are types of training?
Induction, on-the-job, and off-the-job training.
119
What is induction training?
Training given to new employees to familiarize them with the company and their role.
120
What is on-the-job training?
Training conducted at the workplace while employees perform their duties.
121
What is off-the-job training?
Training conducted away from the immediate work area, often by external providers.
122
What is organisational structure?
The way a business arranges its staff and resources to achieve objectives.
123
What is hierarchy in an organisational structure?
The layers of management within an organization, from top to bottom.
124
What is chain of command?
The line of authority and communication running from the top to the bottom.
125
What is span of control?
The number of subordinates a manager is directly responsible for.
126
What is a centralised organisational structure?
Decision-making authority is concentrated at the top levels of management.
127
What is a decentralised organisational structure?
Decision-making authority is delegated to lower levels of management.
128
What is a tall organisational structure?
Many layers of management, narrow span of control, long chain of command.
129
What is a flat organisational structure?
Few layers of management, wide span of control, short chain of command.
130
What is a matrix organisational structure?
Employees work in teams on projects, reporting to both functional and project managers.
131
What is the impact of different organisational structures on business efficiency?
Flat structures can be more efficient; tall structures can be slower due to bureaucracy.
132
What is the impact of different organisational structures on motivation?
Flat structures can empower; tall structures can demotivate due to limited autonomy.
133
Why is employee motivation important to a business?
It leads to higher productivity, better quality, lower absenteeism, and improved staff retention.
134
What is Taylor's scientific management theory?
Focuses on efficiency through task specialization, standardization, and financial incentives.
135
What is Mayo's human relations theory?
Emphasizes social factors, teamwork, and communication in motivating employees.
136
What is Maslow's hierarchy of needs?
A theory proposing that people are motivated by a series of needs, from basic to self-actualization.
137
What is Herzberg's two factor theory?
Identifies motivators (satisfaction) and hygiene factors (dissatisfaction) in the workplace.
138
What are financial incentives to improve employee performance?
Piecework, commission, bonus, profit share, performance-related pay.
139
What is piecework?
Payment based on the number of units produced or tasks completed.
140
What is commission?
Payment based on a percentage of sales made.
141
What is a bonus?
An extra payment given for achieving specific targets or good performance.
142
What is profit share?
Employees receive a portion of the company's profits.
143
What is performance-related pay?
Payment linked to an employee's individual or team performance against set objectives.
144
What are non-financial techniques to improve employee performance?
Delegation, consultation, empowerment, team working, flexible working, job enrichment, rotation, enlargement.
145
What is delegation?
Assigning authority to a subordinate to carry out specific tasks.
146
What is consultation?
Seeking employees' opinions and involving them in decision-making processes.
147
What is empowerment?
Giving employees the authority and responsibility to make decisions about their work.
148
What is team working?
Organizing employees into groups to collaborate on tasks and projects.
149
How does flexible working improve employee performance?
It offers better work-life balance, reducing stress and increasing job satisfaction.
150
What is job enrichment?
Giving employees more challenging and interesting tasks to increase satisfaction.
151
What is job rotation?
Moving employees between different tasks or jobs to reduce monotony and broaden skills.
152
What is job enlargement?
Increasing the number of tasks an employee performs at the same level of responsibility.
153
What is leadership?
The ability to inspire and influence a group of people towards achieving a common goal.
154
What's the distinction between management and leadership?
Management focuses on tasks and processes; leadership focuses on people and vision.
155
What is autocratic leadership style?
Leader makes all decisions without consulting the team.
156
What is paternalistic leadership style?
Leader acts like a parent, making decisions in the best interest of employees.
157
What is democratic leadership style?
Leader involves employees in decision-making, encouraging participation.
158
What is laissez-faire leadership style?
Leader gives employees complete freedom to make decisions and manage their work.
159
What is the role of an entrepreneur in creating and setting up a business?
Identifying opportunities, gathering resources, and launching a new venture.
160
What is the role of an entrepreneur in running and expanding/developing a business?
Managing operations, making strategic decisions, and seeking growth opportunities.
161
What is innovation within a business (intrapreneurship)?
Employees acting like entrepreneurs within an existing organization to develop new ideas.
162
What are barriers to entrepreneurship?
Lack of finance, fear of failure, lack of skills, economic conditions, competition.
163
How do entrepreneurs anticipate risk and uncertainty in the business environment?
By conducting market research, developing contingency plans, and staying informed.
164
What are characteristics and skills required for entrepreneurship?
Creativity, risk-taking, resilience, leadership, problem-solving, communication, determination.
165
What are financial motives for people to set up businesses?
Profit maximisation and profit satisficing.
166
What is profit maximisation as an entrepreneurial motive?
The desire to achieve the highest possible profit for the business.
167
What is profit satisficing?
Achieving a satisfactory level of profit rather than the absolute maximum.
168
What are non-financial motives for people to set up businesses?
Ethical stance, social entrepreneurship, independence, and home working.
169
What is an ethical stance as an entrepreneurial motive?
Starting a business based on strong moral principles or values.
170
What is social entrepreneurship?
Starting a business with a primary goal of addressing social or environmental problems.
171
What is independence as an entrepreneurial motive?
The desire to be one's own boss and have control over decisions.
172
What is home working as an entrepreneurial motive?
The desire to operate a business from home for flexibility or convenience.
173
What are business objectives?
Specific, measurable goals that a business aims to achieve.
174
What is survival as a business objective?
The primary goal for new or struggling businesses to remain operational.
175
What is sales maximisation?
Aiming to sell as many units as possible, often to gain market share.
176
What is market share as a business objective?
Aiming to increase the proportion of total market sales held by the business.
177
What is cost efficiency as a business objective?
Aiming to minimize expenses while maintaining quality and output.
178
What is employee welfare as a business objective?
Prioritizing the well-being, satisfaction, and fair treatment of employees.
179
What is customer satisfaction as a business objective?
Aiming to meet or exceed customer expectations to build loyalty.
180
What are social objectives for a business?
Goals related to benefiting society or the environment, beyond profit.
181
What is a sole trader?
A business owned and controlled by one person, with unlimited liability.
182
What is a partnership?
A business owned by two or more people, sharing profits and liabilities.
183
What is a private limited company?
A company whose shares are not offered to the public, with limited liability.
184
What is franchising?
A business model where a franchisor grants rights to a franchisee to operate under its brand.
185
What is a social enterprise?
A business that trades for a social or environmental purpose.
186
What are lifestyle businesses?
Businesses set up to provide a certain level of income and flexibility for the owner.
187
What are online businesses?
Businesses that primarily conduct their operations and sales through the internet.
188
What is growth to PLC and stock market flotation?
A private limited company becoming a public limited company by selling shares on the stock market.
189
What is opportunity cost?
The value of the next best alternative forgone when a choice is made.
190
What are choices and potential trade-offs in business?
Decisions involve giving up one benefit to gain another, creating trade-offs.
191
What are the difficulties in developing from an entrepreneur to a leader?
Shifting from hands-on control to delegating, inspiring, and managing a larger team.
192
How does the growth rate of the UK economy compare to emerging economies?
Emerging economies often have higher growth rates than developed economies like the UK.
193
What is the growing economic power of countries within Asia, Africa and other parts of the world?
These regions are experiencing significant economic growth, increasing their global influence.
194
What are the implications of economic growth for individuals?
Increased incomes, improved living standards, and more employment opportunities.
195
What are the implications of economic growth for businesses in terms of trade opportunities?
New markets, increased demand for goods/services, and opportunities for expansion.
196
What are the implications of economic growth for businesses in terms of employment patterns?
Changes in job creation, skill demands, and workforce demographics.
197
What is Gross Domestic Product (GDP) per capita?
The total value of goods and services produced in a country divided by its population.
198
What is literacy as an indicator of growth?
The percentage of the population that can read and write, indicating human capital development.
199
What is health as an indicator of growth?
Life expectancy, infant mortality, and access to healthcare, reflecting human well-being.
200
What is the Human Development Index (HDI)?
A composite statistic of life expectancy, education, and per capita income indicators.
201
What are exports?
Goods and services produced domestically and sold to other countries.
202
What are imports?
Goods and services bought from other countries and brought into the domestic market.
203
What is the link between business specialisation and competitive advantage?
Specialisation allows businesses to focus resources, leading to greater efficiency and competitive advantage.
204
What is Foreign Direct Investment (FDI) and its link to business growth?
Investment by a company in a foreign country, often leading to business expansion and growth.
205
What factors contribute to increased globalisation?
Reduced trade barriers, political change, lower transport/communication costs, MNCs, FDI, migration, global labour force, structural change.
206
How does the reduction of international trade barriers/trade liberalisation contribute to globalisation?
It makes it easier and cheaper for goods, services, and capital to move across borders.
207
How does political change contribute to globalisation?
Governments adopting pro-trade policies or joining international agreements foster global integration.
208
How do reduced costs of transport and communication contribute to globalisation?
They make it cheaper and faster to move goods, people, and information globally.
209
How does the increased significance of global (transnational) companies contribute to globalisation?
MNCs operate across borders, integrating economies and spreading global practices.
210
How do increased investment flows (FDI) contribute to globalisation?
Cross-border investments link economies and facilitate the transfer of capital and technology.
211
How does migration contribute to globalisation?
Movement of people across borders facilitates cultural exchange and labor mobility.
212
How does the growth of the global labour force contribute to globalisation?
Increased availability of workers worldwide supports global production and supply chains.
213
How does structural change contribute to globalisation?
Shifts in economic structures, like industrialization in developing countries, integrate them globally.
214
What is protectionism?
Government policies to restrict international trade to protect domestic industries.
215
What are tariffs?
Taxes imposed on imported goods and services.
216
What are import quotas?
Limits on the quantity of certain goods that can be imported.
217
How does government legislation act as a trade barrier?
Regulations, standards, or licensing requirements can restrict foreign goods.
218
How do domestic subsidies act as a trade barrier?
Government payments to domestic producers make their goods cheaper than imports.
219
What are trading blocs?
Groups of countries that agree to reduce or eliminate trade barriers among themselves.
220
What is the EU and the single market?
A trading bloc with free movement of goods, services, capital, and people among member states.
221
What is ASEAN?
The Association of Southeast Asian Nations, a regional intergovernmental organization.
222
What is NAFTA?
The North American Free Trade Agreement, a trade bloc between the US, Canada, and Mexico.
223
What is the impact on businesses of trading blocs?
Increased trade within the bloc, reduced costs, but potential barriers to non-members.
224
What are push factors prompting international trade?
Saturated domestic markets and intense competition at home.
225
How do saturated markets act as a push factor for international trade?
Limited growth opportunities domestically push businesses to seek foreign markets.
226
How does competition act as a push factor for international trade?
Intense domestic competition can force businesses to seek less competitive foreign markets.
227
What are pull factors prompting international trade?
Opportunities for economies of scale and risk spreading.
228
How do economies of scale act as a pull factor for international trade?
Larger global markets allow businesses to increase production and reduce average costs.
229
How does risk spreading act as a pull factor for international trade?
Operating in multiple markets reduces reliance on one economy, diversifying risk.
230
What is the possibility of off-shoring and outsourcing in international trade?
Relocating production or business processes to other countries to reduce costs.
231
How can selling in multiple markets extend the product life cycle?
By introducing products to new markets where they are still in earlier stages of their life cycle.
232
What factors should be considered when assessing a country as a market?
Disposable income, ease of doing business, infrastructure, political stability, exchange rate.
233
How do levels and growth of disposable income affect market assessment?
Higher and growing disposable income indicates greater purchasing power and market potential.
234
How does ease of doing business affect market assessment?
Lower regulatory burdens and efficient processes make a country more attractive for market entry.
235
How does infrastructure affect market assessment?
Good transport, communication, and energy infrastructure supports efficient market operations.
236
How does political stability affect market assessment?
A stable political environment reduces risks and provides a predictable business climate.
237
How does the exchange rate affect market assessment?
Favorable exchange rates can make products more competitive or imports cheaper.
238
What factors should be considered when assessing a country as a production location?
Production costs, labour skills, infrastructure, trade bloc location, incentives, ease of business, political stability, natural resources, ROI.
239
How do costs of production affect production location assessment?
Lower labor, raw material, and energy costs make a location more attractive for manufacturing.
240
How do skills and availability of labour force affect production location assessment?
Access to a skilled and available workforce is crucial for efficient production.
241
How does infrastructure affect production location assessment?
Reliable transport, utilities, and communication networks are essential for production and logistics.
242
How does location in a trade bloc affect production location assessment?
Being within a trade bloc can offer tariff-free access to a larger market.
243
How do government incentives affect production location assessment?
Tax breaks, grants, or subsidies can attract businesses to set up production facilities.
244
How does ease of doing business affect production location assessment?
Streamlined regulations and efficient administrative processes reduce operational hurdles.
245
How does political stability affect production location assessment?
A stable government reduces risks of disruption and ensures policy consistency.
246
How do natural resources affect production location assessment?
Availability of raw materials can reduce costs and simplify supply chains.
247
How does likely return on investment affect production location assessment?
The potential profitability and financial viability of setting up production in a location.
248
What are reasons for global mergers or joint ventures?
Spreading risk, entering new markets, acquiring brands/patents, securing resources, increasing competitiveness.
249
How do global mergers/JVs help in spreading risk over different countries/regions?
Diversifying operations across multiple economies reduces reliance on any single market.
250
How do global mergers/JVs help in entering new markets/trade blocs?
They provide immediate access to established distribution networks and customer bases.
251
How do global mergers/JVs help in acquiring national/international brand names/patents?
They allow businesses to gain established market presence and intellectual property quickly.
252
How do global mergers/JVs help in securing resources/supplies?
They can provide direct control over raw materials or critical components.
253
How do global mergers/JVs help in maintaining/increasing global competitiveness?
They allow for greater scale, market power, and access to new technologies.
254
What is the impact of movements in exchange rates on global competitiveness?
A stronger currency makes exports more expensive and imports cheaper, affecting competitiveness.
255
How does political influence control MNCs?
Governments can use diplomacy, trade agreements, or sanctions to influence MNC behavior.
256
How can businesses achieve competitive advantage through cost competitiveness?
By producing goods or services at a lower cost than rivals, allowing for lower prices.
257
How can businesses achieve competitive advantage through differentiation?
By offering unique products or services that are perceived as superior by customers.
258
What are skill shortages and their impact on international competitiveness?
Lack of qualified workers can hinder productivity, innovation, and a nation's global standing.
259
What is global marketing strategy?
A standardized marketing approach used across multiple countries.
260
What is global localisation (glocalisation)?
Adapting a global marketing strategy to suit local tastes and cultural preferences.
261
What is the domestic/ethnocentric marketing approach?
Applying the home country's marketing strategy directly to foreign markets.
262
What is the mixed/geocentric marketing approach?
A global strategy with local adaptations, balancing standardization and customization.
263
What is the international/polycentric marketing approach?
Developing unique marketing strategies for each individual foreign market.
264
How are the marketing mix (4Ps) applied and adapted to global markets?
Product, price, place, and promotion are adjusted to suit local conditions and preferences.
265
How is Ansoff’s Matrix applied and adapted to global markets?
Used to identify growth strategies like market penetration, development, or diversification in new countries.
266
What is cultural diversity in global niche markets?
Recognition that groups of people across the globe have different interests and values.
267
What are features of global niche markets?
Specific customer needs, often premium pricing, specialized products, and targeted marketing.
268
How is the marketing mix (4Ps) applied and adapted to suit global niches?
Products, prices, distribution, and promotion are highly customized for specific niche segments.
269
What are cultural differences as a consideration for businesses?
Variations in beliefs, values, customs, and behaviors across different societies.
270
What are different tastes as a consideration for businesses?
Preferences for specific flavors, styles, or product attributes that vary by region.
271
What is language as a consideration for businesses?
The need for accurate translation and understanding of local idioms in communication.
272
What are unintended meanings as a consideration for businesses?
Words or symbols that have different, often negative, connotations in other cultures.
273
What are inappropriate/inaccurate translations as a consideration for businesses?
Mistakes in language that can lead to misunderstandings, offense, or marketing failures.
274
What is inappropriate branding and promotion as a consideration for businesses?
Marketing messages or brand images that clash with local cultural norms or values.
275
What is the impact of MNCs on the local economy regarding local labour, wages, working conditions and job creation?
Can create jobs, but also exploit labor, depress wages, or offer poor conditions.
276
What is the impact of MNCs on local businesses?
Can provide competition, drive innovation, or displace local firms.
277
What is the impact of MNCs on the local community and environment?
Can bring infrastructure, but also cause pollution or social disruption.
278
What is the impact of MNCs on the national economy regarding FDI flows?
Attracts foreign investment, boosting capital and economic activity.
279
What is the impact of MNCs on the national economy regarding the balance of payments?
Can improve it through exports or worsen it through repatriated profits.
280
What is the impact of MNCs on the national economy regarding technology and skills transfer?
Can introduce new technologies and upskill the local workforce.
281
What is the impact of MNCs on the national economy regarding consumers?
Offers wider product choice, lower prices, but can also reduce local competition.
282
What is the impact of MNCs on the national economy regarding business culture?
Can introduce new management practices and ethical standards.
283
What is the impact of MNCs on the national economy regarding tax revenues and transfer pricing?
Can boost tax revenues, but transfer pricing can reduce taxable profits.
284
What are ethics in business?
Moral principles that guide business behavior and decision-making.
285
What are stakeholder conflicts in ethics?
When the interests of different groups affected by a business clash, creating ethical dilemmas.
286
What are ethical considerations regarding pay and working conditions?
Ensuring fair wages, safe environments, reasonable hours, and non-discriminatory practices.
287
What are environmental considerations regarding emissions?
Minimizing greenhouse gases and pollutants released into the atmosphere.
288
What are environmental considerations regarding waste disposal?
Responsible management and reduction of waste generated by business operations.
289
What are supply chain considerations regarding exploitation of labour?
Ensuring fair treatment, wages, and conditions for workers throughout the supply chain.
290
What are supply chain considerations regarding child labour?
Prohibiting and actively preventing the use of underage workers in the supply chain.
291
What are marketing considerations regarding misleading product labelling?
Ensuring product information is accurate, honest, and not deceptive to consumers.
292
What are marketing considerations regarding inappropriate promotional activities?
Avoiding offensive, exploitative, or culturally insensitive advertising and campaigns.
293
What factors should be considered when controlling MNCs?
Political influence, legal control, pressure groups, and social media.
294
How does legal control control MNCs?
National and international laws, regulations, and treaties can govern MNC operations.
295
How do pressure groups control MNCs?
They campaign, raise awareness, and lobby for changes in MNC practices.
296
How does social media control MNCs?
It enables rapid dissemination of information, public scrutiny, and consumer boycotts.

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