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Edexcel Economics B > Theme 3 > Flashcards

Flashcards in Theme 3 Deck (10)
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1
Q

Why do some countries trade?

A
  • Climate: some countries cannot grow certain vegetables or fruit / raw materials
2
Q

What are push factors?

A

the reasons why people leave an area:

  • lack of services
  • lack of safety
  • high crime
  • crop failure
3
Q

What are pull factors?

A

the reason why people move to a particular area:

  • higher employment
  • more wealth
  • better services
  • good climate
4
Q

What are examples of push factors?

A
  • saturated market (difficult to make sales)

- competition (hard to compete with prices)

5
Q

What are examples of pull factors?

A
  • Risk-spreading

- Economies of scale

6
Q

What is offshoring?

A

The process of having some of a firms processes or services abroad e.g. call centres to take advantage of lower labour costs

7
Q

What is outsourcing?

A

The process of getting goods and services from an outside supplier. such as another supplier or firm.

8
Q

What is an economic downturn?

A

A decline in GDP

9
Q

How do small firms compete?

A
  • USP’s + differentiation
  • Flexibility
  • Niche Markets
  • Customer Service
  • Personalised Relationships
10
Q

What are Unique Selling Points (USP’s)?

A

Distinctive features that no competing product can match perfectly precisely.