Ib Business And Management Notes Essay

7448 WordsApr 12, 201230 Pages
1. Balance of Payments: an annual record of a country's export earnings and its import expenditure; a surplus exists if the value of exports exceeds the value of imports (vice versa for a deficit on the balance of payments) 2. deregulation: the removal of government rules and regulations which constrain an industry, thereby enhancing its efficiency; should also encourage more competition within an industry 3. direct tax: a levy that is paid from the income of individuals or businesses, such as personal income tax and corporation tax 4. economic growth: measures the change in the Gross Domestic Product (GDP) of a nation over time; growth occurs if there is an increase in GDP for two consecutive quarters 5. ethics: the moral values and judgments that society believes organizations should consider in their decision-making 6. exchange rate: the value of a country's currency in terms of another currency 7. external shocks: unforeseeable and unexpected changes in the external business environment that tend to affect all businesses in the economy, such as natural disasters or wars; also knows as exogenous shocks 8. fiscal policy: government policies that deal with taxation and government expenditure in order to affect the level of economic activity 9. Gross Domestic Product (GDP): the total value of a nation's annual output, used as an indicator of the level of economic activity in a country 10. indirect tax: a levy placed on the purchase of goods and services, such as sales taxes and excise duties 11. inflation: occurs when the general price level in an economy continously rises; calculated by measuring changes in the cost of a representative basket of goods and services purchased by the average household over a period of time 12. interest rate: a measure of the price of money, expressed in terms of the amount charged for money

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