2.1.3 Business and Globalisation

Question 1

Write a Definition Of Globalisation?

Answer 1

Globalisation is where business operate internationally and Gain a lot of Influence or Power.

Question 2

What Does Globalisation Involves?

Answer 2

It Involves Business Buying and Selling Around The World Often Due to The Cost or Availability of Products or Cheap Labour.

Question 3

Write a Definition of International Trade?

Answer 3

• Its The Process of Buying from And Selling to Overseas Countries.

Question 4

Name the 3 Ways Things That Impact Globalisation?

Answer 4

• 1) Imports
• 2) Exports
• 3) Location

Question 5

Write a Definition of Imports and Exports?

Answer 5

• Imports Is the Flow of good and Services into 1 Country from another country.
• Exports is The Flow of goods and services out of 1 to Another Country.

Question 6

What Does the Impact of Globalisation on importing allow it to do?

Answer 6

Globalisation allows businesses to import products and raw materials at lower prices then they would be able to Produce.

Question 7

What Does Exporting allow a Business to do?

Answer 7

Exporting allows Business to open up new international Markets and this gives them a potential to grow.

Question 8

What Does Location Allows a Business to do

Answer 8

Locations Brings Opportunities for a Business It Allows The Business Relocate operations to other countries and reduced labour costs

Question 9

Explain How Globalisation can Impact Business Location ( 3 Marker)

Answer 9

Globalisation can result in business being able to locate somewhere cheaper abroad (P) This May be a benefit from lower labour costs (S) This Leads to a Business being closer to raw materials or Being closer to the market in which they sell good or services (S) Therefore increasing profit margins (S)

Question 10

Write a Definition of Multinationals?

Answer 10

• a Multination is a Larger Company with Faculties and Markets around The World

Question 11

Name 2 Benefits of Globalisation for a Business?

Answer 11

• 1) New Market Opportunities.
• 2) Access to Technology and Resources.

Question 12

Name 2 Drawbacks of Globalisation for a Business?

Answer 12

• 1) Threat From Foreign competitors
• 2) Challenge of Adapting products and Services to meet the need of foreign consumers.

Question 13

Explain one Benefit of International Trade for a Uk Business ( 3 Marker)

Answer 13

International Trade Allows UK Business to Enter new Markets (P) This Is Because they Can have a Greater Number of Potential Customers to sell (S) This Leads to Them Maximising Sales and Gaining a Competitive Advantage Over Their Rivals (S)

Question 14

Write a Definition of Free Trade?

Answer 14

Free Trade is where There are No Barriers to Trade Between Countries.

Question 15

Write a Definition of Protectionism?

Answer 15

Protectionism is where a Governments Take Action to Restrict the flow of imports into their country.

Question 16

Name the 5 Trade Barriers and What Do they Each Mean?

Answer 16

• 1) Tariffs - Taxes on Imports.
• 2) Non -Tariff Barriers - Imposing Quality or Safety Standards.
• 3) Trade Blocs - a Small Group of Countries Trading With Each Other.
• 4) Subsides - Money Given To Help Domestic Producers.
• 5) Quotas - Physical Limits on Imports.

Question 17

Give Example of a Trade Bloc?

Answer 17

• The North American Free Trade Association (NAFTA)

Question 18

Name 4 Reasons for Trade Barriers?

Answer 18

• 1) Protecting Jobs in Domestic Industries.
• 2) Protecting Emerging Industries .
• 3) Preventing the Dumping of Cheap goods on Domestic Market .
• 4) Raising Revenues from Tariffs.

Question 19

Explain one Trade Barrier That Might have an Impact on a Business When Trading Internationally (3 Marker)

Answer 19

A Business May Be Affected By Trade Blocs (P) This is Because of an increase in foreign direct investment (S) This Leads to economies of nearby countries benefiting from this investment (S)

Question 20

Write a Definition of Glocalisation?

Answer 20

• Glocalisation is where business have to change their products in order to adapt to other countries.

Question 21

Name 2 Strategies a Business Will Use to Change Product?

Answer 21

• 1) Change Tastes to Meet Cultural Preferences.
• 2) Change Technological Components.

Question 22

Name 2 Strategies a Business Will Use to Change Price?

Answer 22

• 1) Change Price to Consider Tariffs.
• 2) Comply with Different Tax Laws.

Question 23

Name 1 Strategies a Business Will Use to Change Place?

Answer 23

• Change location of Products in line with local preferences.

Question 24

Name 1 Strategies a Business Will Use to Change Promotion?

Answer 24

• Revise advertising companies to take account.