Edexcel A-level Business
Theme 4
Detailed mind maps on the
whole specification of theme
4
,• The growth rate of a country of a country is measured by the Indicators of Growth
annual change in its gross deomestic product GDP
• UK growth is lower than that of emerging economies.
The UK economy has seen a decline in its mafufactring as
business choice to manifacture in ermerging economies such
as China
• The UK growth rate peaked at around 4% in 2000, whereas
China peaked at around 14% in 2007
Globalisation is the economic integration of different
countries through increasing freedoms
The past 20 years rapid globlasation has occurred
Emerging economic powers:
- BRICS: Brazil, russia india china south africa Impacts on Individuals
- - Reduced unemployment as there is more demand
MINT: mexico, indonesia nigeria turkey
- Increased average incomes, as individuals now have rising incomes
Emerging economies have a growing middle class which
- Access to quality public services as more tac revenue is generated
increases profitabiltiy
4.1
Growing
Economies
How economic growth impacts business
- Potential for increased profits GDP per capita: the higher measn better standard of
- Reduced unemployment
-
living. Can also be usefull to compare countries growth
Customers are likely to have income elastic
- Reduced cost of production
- Increased average incomes Health: poor health will impact the quality og
- Access to quality public services as tax workforce. Lower infant mortality
increased
- Increased trade Literacy: makes 55% diffrence in economic growth
- Increased investment
- Increased FDI foreign direct investment HDI: life expectsncy, education and income
Market saturation: the point at which new demand is
, Imports and exports Foreign direct investment and
Business Growth :
- internationally import and exprt goods
and services FDI is investment by foreign
- In 2022 the Uks Biggest import was firms that results in more than
cars 10% share of ownership in
- Exports generate revenue for domestic firms
businesses selling their goods
- Businesses typically grow
through FDI as mergers,
Specialisation and competitive takeovers, partnerships or
advantage 4.1.2 international join ventures
- Such as EE takeing over
trade and business
- - Specialisation occurs when a growth German company T-mobie
cpuntry / bsuiness decides to focus - Benefits if FDI: increased
on producing a particular economice growth, increased
good/service job opportunities, access to
- This can be countries specilising in knowledge and expertise
like God or TNCS Inward FDI occurs when a foregin business
- Benefits: economies of scale, lower invests in the local economy
proces for consumers, icrease profit
margins, excess outpouit can be sold Outward FDI occurs when a domestic
abroad business expands its operations to a foreign
- Gaining competivie advanatge: country
Theme 4
Detailed mind maps on the
whole specification of theme
4
,• The growth rate of a country of a country is measured by the Indicators of Growth
annual change in its gross deomestic product GDP
• UK growth is lower than that of emerging economies.
The UK economy has seen a decline in its mafufactring as
business choice to manifacture in ermerging economies such
as China
• The UK growth rate peaked at around 4% in 2000, whereas
China peaked at around 14% in 2007
Globalisation is the economic integration of different
countries through increasing freedoms
The past 20 years rapid globlasation has occurred
Emerging economic powers:
- BRICS: Brazil, russia india china south africa Impacts on Individuals
- - Reduced unemployment as there is more demand
MINT: mexico, indonesia nigeria turkey
- Increased average incomes, as individuals now have rising incomes
Emerging economies have a growing middle class which
- Access to quality public services as more tac revenue is generated
increases profitabiltiy
4.1
Growing
Economies
How economic growth impacts business
- Potential for increased profits GDP per capita: the higher measn better standard of
- Reduced unemployment
-
living. Can also be usefull to compare countries growth
Customers are likely to have income elastic
- Reduced cost of production
- Increased average incomes Health: poor health will impact the quality og
- Access to quality public services as tax workforce. Lower infant mortality
increased
- Increased trade Literacy: makes 55% diffrence in economic growth
- Increased investment
- Increased FDI foreign direct investment HDI: life expectsncy, education and income
Market saturation: the point at which new demand is
, Imports and exports Foreign direct investment and
Business Growth :
- internationally import and exprt goods
and services FDI is investment by foreign
- In 2022 the Uks Biggest import was firms that results in more than
cars 10% share of ownership in
- Exports generate revenue for domestic firms
businesses selling their goods
- Businesses typically grow
through FDI as mergers,
Specialisation and competitive takeovers, partnerships or
advantage 4.1.2 international join ventures
- Such as EE takeing over
trade and business
- - Specialisation occurs when a growth German company T-mobie
cpuntry / bsuiness decides to focus - Benefits if FDI: increased
on producing a particular economice growth, increased
good/service job opportunities, access to
- This can be countries specilising in knowledge and expertise
like God or TNCS Inward FDI occurs when a foregin business
- Benefits: economies of scale, lower invests in the local economy
proces for consumers, icrease profit
margins, excess outpouit can be sold Outward FDI occurs when a domestic
abroad business expands its operations to a foreign
- Gaining competivie advanatge: country
