1.6 Growth & evolution

________: two or more businesses agree to work closely together on a particular project and create a separate business division to do so.

________: growing integration of countries through increased freedom of global movement of goods, capital and people.

________: when a company buys over 50 % of the shares of another company and becomes the controlling owner often referred to as "acquisition.

________: using barriers to free trade, such as tariffs and quotas, to protect a country's own domestic industries.

________: business that uses the name, logo and trading systems of an existing successful business.

________: agreements between firms in which each agrees to commit resources to achieve an agreed set of objectives.

________: agreement by shareholders and managers of two businesses to bring both firms together under a common board of directors with shareholders in both businesses owning shares in the newly ________ business.

reductions in a firms unit (average) costs of production that result from an increase in the scale of operations

factors that cause average costs of production to rise when the scale of operation is increased

unit costs

expansion of a business by means of opening new branches, shops or factories (also known as organic growth)

business expansion achieved by means of merging with or taking over another business, from either the same or a different industry

agreement by shareholders and managers of two businesses to bring both firms together under a common board of directors with shareholders in both businesses owning shares in the newly merged business

when a company buys over 50% of the shares of another company and becomes the controlling owner often referred to as "acquisition"

integration with a firm in the same industry and at the same stage of production

integration with a business in the same industry but a customer of the existing business

integration with a business in the same industry but a supplier of the existing business

merger with or takeover of a business in a different industry

two or more businesses agree to work closely together on a particular project and create a separate business division to do so

agreements between firms in which each agrees to commit resources to achieve an agreed set of objectives

business that uses the name, logo and trading systems of an existing successful business

growing integration of countries through increased freedom of global movement of goods, capital and people

no restrictions or trade barriers exist that might prevent or limit trade between countries

using barriers to free trade, such as tariffs and quotas, to protect a country's own domestic industries

business organization that has its headquarters in one country, but with operating branches, factories and assembly plants in other countries

Maximum output that can be achieved using the available inputs (resources) this scale can only be increased in the long term by employing more of all inputs

Reductions in a firm's unit (average) costs of production that result from an increase in the scale of operations

Factors that cause average costs of production to rise when the scale of operation is increased

Expansion of a business by means of opening new branches, shops or factories (also known as organic growth)

Business expansion achieved by means of merging with or taking over another business, from either the same or a different industry

Agreement by shareholders and managers of two businesses to bring both firms together under a common board of directors with shareholders in both businesses owning shares in the newly merged business

When a company buys over 50% of the shares of another company and becomes the controlling owner often referred to as "acquisition"

Integration with a firm in the same industry and at the same stage of production

Integration with a business in the same industry but a customer of the existing business

Integration with a business in the same industry but a supplier of the existing business

Merger with or takeover of a business in a different industry

Two or more businesses agree to work closely together on a particular project and create a separate business division to do so

Agreements between firms in which each agrees to commit resources to achieve an agreed set of objectives

Business that uses the name, logo and trading systems of an existing successful business

Growing integration of countries through increased freedom of global movement of goods, capital and people

No restrictions or trade barriers exist that might prevent or limit trade between countries

Using barriers to free trade, such as tariffs and quotas, to protect a country's own domestic industries

Business organization that has its headquarters in one country, but with operating branches, factories and assembly plants in other countries

Why become a multinational?