Business and the international economy 6.3

Question 1

What is globalisation

Answer 1

The term used to describe increases in world wide trade and movement of people and capital between countries

Question 2

What is the reason for glovalisation

Answer 2

Can improve travel links between countries making easier to transport goods between countries

Many industries are growing rapidly and now they can export in large supplies in large quantities at competitive prices

Question 3

What are opportunities the of globalisation for business

Answer 3

Starting to sell exports to other countries opens up foreign markets, this also increases potential sales and allows goods to be sent from abroad

Open factories in other countries, may be cheaper to make goods in other countries.

Importing materials from other countries and produce good in home country, may be cheaper to purchase supplies outside home country reducing costs

Question 4

What are the threats of globalisation for the business

Answer 4

Increasing import into home market from foreign competitors, Products will require maintenance and may not be available in home country

Employees may leave business that cannot pay the game as other international competitors, business will require to make effort to keep employees

Question 5

What are import tariffs and why might governments introduce them

Answer 5

Tax placed on imported goods when they arrive into country

Make them less competitive than locally produce goods

Question 6

What are improv quotes and why may the government introduce them

Answer 6

Regulation which limits importing goods to a certain fixed quantity

Increases prices go imported goods which leads to domestically produced good having increased sales