Global Competitiveness (Edexcel A-Level Business): Flashcards
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Global competitiveness definition
Global competitiveness definition
Firm's ability to compete effectively in international markets
Five MNC advantages
Five MNC advantages
Scale economies, global sourcing, proximity, knowledge, risk spread
Effect of currency depreciation on exports
Effect of currency depreciation on exports
Makes exports cheaper for foreign buyers
Effect of currency appreciation on exports
Effect of currency appreciation on exports
Makes exports more expensive for foreign customers
Economic risk definition
Economic risk definition
Risk future cash flows change due to unexpected exchange rate moves
Purpose of fixed contracts in exchange rate management
Purpose of fixed contracts in exchange rate management
Lock in prices for future transactions, hedge against rate swings
Competitive advantage definition
Competitive advantage definition
Distinctive strengths that competitors lack
Cost competitiveness definition
Cost competitiveness definition
Achieving economies of scale/scope for cost advantages over rivals
Key characteristic of differentiation strategy
Key characteristic of differentiation strategy
Commands premium prices through unique attributes
Impact of skilled labour on competitiveness
Impact of skilled labour on competitiveness
Firms with skilled workers can produce/export more effectively