4.1 Globalisation Flashcards
What are the features of emerging economies?
- Rapid industrialisation
- have potential to become developed countries
- faster long term economic growth
- many still in poverty with economic growth taking many out.
- businesses struggle to access global markets.
What perceived business threats from emerging countries?
- Large pool of labour and cheap labour = comp prices
- undervalued protection of brand and other intellectual property (fake goods)
- state subsidy of industry to make them more competitive globally
What are business opportunities in emerging economies?
- Growing number of educated middle class consumers = increase spending
- cultural shifts - higher demand for personal products, private and healthcare
- demand for infrastructure and other products and services from developed economies
- source of high skilled labour but low cost
- great potential for joint venturer.
What is a joint venture?
2 businesses came together to share resources
What is an acquisition?
Takeover more than 50% of the business
What is economic growth?
Increase in a countries productive capacity, usually measured using GDP
What one the BRICS countries?
Brazil, Russia, India, China, South Africa
What are the MINT countries?
Mexico, Indonesia, Nigeria, Turkey
What are the main effects of globalisation?
- Expansion of trade between countries
- increase in transfers of financial capital across national boundaries
- global brand
- production and consumption shifts
- labour migration
- shifts in economic and political strength
Why are emerging economies likely to continue having high rates of growth?
- Urbanisation process continues to develop quicker
- industrialisation - especially in east Asia and south Africa
- population growth = large pool of labour
- per capita income growth rise of middle classes and consumer society
- workforce continually improves skills and be more productive
- technological innovation in many emerging countires
What are employment patterns?
- changes in migration, working women, multi-jobs, home working
- moving away from agriculture
- structural change in employment from primary to tertiary sectors
- increase service sector as incomes rise
What are the 6 indicators of economic growth?
- GDP
- GDP per capita
- PPP
- health
- literacy
- HDI
What is international trade?
Exchange of capital goods and services across international borders of territories
What factors need to be considered when trading internationally?
- exchange rates
- tariffs
- stage of the econ cycle abroad and here
- transport of goods
- external shocks
- international competitiveness
- time zones
- cost
- freight shipping in bulk
- customs
- legislation
What is an import?
Goods that are made in specific countries and bought in another country
