2.4 Globalisation Flashcards
Benefits for UK business of globalisation
1.
Trading on a global level (rather than just the UK) means access to more customers, and opportunities to trade in bigger markets
Benefits for UK business of globalisation
2.
A UK business which is trading on a global scale can gain economies of scale, and get lower average unit costs. This means the goods may be cheaper for the customer. This could give UK businesses competitive advantage and higher profits
Benefits for UK business of globalisation
3.
Labour migration into the UK now means a fresh pool of applicants willing to carry out jobs in manufacturing, hospitality, NHS and construction. Businesses can now hire the most talented employees worldwide in certain industries e.g. technology
Benefits for UK business of globalisation
4.
Specialisation
Globalisation can mean that some economies start to
specialise at what they are good at
This makes the country very efficient at producing those goods, they can be better quality and more innovative than other countries, which gives them competitive advantage
Benefits for UK business of globalisation
5.
Multiplier effect
As MNCs move to the UK to manufacture
their goods, they create jobs for UK workers
This means all the factory workers now have an income which they can spend in the local area; on restaurants, in shops, in garden centres. This is called the multiplier effect.
Globalisation meaning
Globalisation is the trend for markets to become worldwide in scope
Multinational company meaning
A multinational company produces goods and services in more than one country. They are also called transnational corporations
International trade meaning
International trade is the selling of goods and services across national borders
Exports meaning
Exports are goods and services produced by a business in one country and sold in another
Tariff meaning
A tariff is a tax on foreign goods imported into a country
Growth meaning
Growth occurs when a business sell increased quantities of its products
Economies of scale meaning
Economies of scale occur when the cost of producing a single unit falls as output increases
Inward investment meaning
Inward investment occurs when governments, businesses and individuals invest capital into another country, for example building new factories or buying companies
Takeover meaning
A takeover occurs when one business buys control of another one
Product design meaning
Product design translates the needs of consumers, or the inventiveness of entrepreneurs, into a saleable product
