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Business Studies Theme 2 (GROWING THE BUSINESS (Trade Barriers (Tariffs…

- - - - Business expands by itself.
        
        introducing new products
        
        research + development
        
        innovation
        
        entering new markets
        
        e-commerce
        
        opening store in another country
    - - Business expands by joining with another.
        
        mergers
        
        When two or more businesses join together to operate as one business.
        
        takeovers/acquisitions
        
        When one business buys another and incorporates it into its own.
  - - - retained profit
        
        :check: no repayment :check: quick access
        
        :red_cross: may not be enough for expansion
      - selling assets
        
        :check: worth selling if no longer needed
        
        :red_cross: may not be a buyer :red_cross: time-consuming
    - - loan capital
        
        :check: access to large amounts of money
        
        :red_cross: repayment with interest
      - share capital
        
        :check: can raise large amounts of money
        
        :red_cross: loss of control :red_cross: shareholders get dividends
  - - - cash flow
      - change in business culture
      - market share
      - new leaders
    - - competition
      - technology
      - legislation
      - market conditions
    - - (Shrinking market + -ve economic climate) Retrenchment :arrow_right: Efficiency :arrow_right: Profit :arrow_right: Growth (Expanding market + +ve economic climate)
  - - - taxes on imports
    - - physical limits on imports
    - - money given to help domestic producers
    - - promoting trade between a small group of countries
    - - imposing quality or safety standards
  - - - treating workers fairly
      - treating suppliers fairly
      - treating consumers fairlry
      - :check: product differentiation/USP :check: improved reputation +customer loyalty:check: established brand :check: motivated workers :check: add value
      - :red_cross: higher costs :red_cross: consumers unwilling to pay more :red_cross: cannot compete on price :red_cross: smaller target market
    - - Short term
        
        traffic congestion
        
        air, noise + water pollution
      - Long term
        
        climate change
        
        depletion of land, food + natural resources