3.7.5 Globalisation

Question 1

what is globalisation?

Answer 1

the dispersion of an industry on a global scale

Question 2

is globalisation inevitable?

Answer 2

no it’s not it depends on many factory especially the financial crisis in recent years

Businesses may fail, therefore never reach global levels

Question 3

what are the world largest economies in order?

Answer 3

China
USA
India
Japan
Germany
Russia
Brazil
UK
France

Question 4

what are the key features of globalisation?

Answer 4

trade to gdp ratios
expansion worldwide
source materials all over the globe

Question 5

what are the 10 key characteristics of globalisation for bsuinesses

Answer 5

1. Greater trade across borders
2. Increase in foreign direct investments and transnational companies
3. development of global brands
4. greater use of outsourcing
5. higher levels of labour migration
6. New trading groups
7. shift in balance of economies and financial power
8. increase in spending on capital investment
9. world economies more connected
10. rising share price

Question 6

what is containerisation?

Answer 6

Cost of ocean shipping comes down due to containerisation bulk shipping and other efficiencies higher exports

Question 7

how has technological change effected technological change?

Answer 7

reduces cost of transmition and communications (greater communication means better interlinked systems)

Question 8

what are the benefits of globalisation?

Answer 8

gain of market share
increase awareness
better labour protection
economies of scale
lower cost labour

Question 9

what are the drawbacks of globalisation?

Answer 9

inflation
vulnerable to economic shocks
inequality
trade inbalance
unemployment
dominant global brands

Question 10

what are economies of increased dimensions?

Answer 10

Greater volume om the cargo ship but without taking up space (increase height of container) which lowers cost
(containerisation)