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Business (Internal Growth (Methods of achieving internal growth (Retained…
Business
Internal Growth
Internal growth also known as organic growth is when a business grows from a internal source of finance such as retained profit
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External Finance
External growth also known as inorganic growth is when a business grows from a external source of finance such as loans
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Globalisation
The process by which businesses start operating on a international scale, selling to and buying from multiple countries.
Advantages
+Greater employment opportunities for people
+Access to bigger markets for businesses
+Fast and wide spread of new technologies across the globe
+Ability for companies to achieve lower costs
+Availability of greater variety of goods and services to the consumers
Disadvantages
-Globalisation may lead to faster spread of infectious diseases
-Smaller firms may lack teh resources to compete internationally ,therefore maybe forced out of business.
-Unrestricted globalisation can hamper the development of less developed countries
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Trade Bloc
A trade bloc is a group of countries that had agreed to a trade deal agreement to not place tariffs on one another's imports
Tariff
A Tariff is a tax placed on an import, to increase its price and decrease its demand as goods that sell for to much aren't typically bought as much.
Import
A import is when a country brings in goods to their country from abroad, money moves out the country
Export
A export is when a country produces goods and sells them abroad, money moves into the country