Business Theme 4 Flashcards
What is globalization?
The process of increased interconnectedness and interdependence among countries and cultures.
Define ‘global market’ in business.
A market that transcends national boundaries, allowing businesses to sell their products and services worldwide.
Describe the impact of globalization.
Increased economic growth, cultural exchange, and competition, along with challenges like inequality and cultural homogenization.
What is international trade?
The exchange of goods and services between countries.
Explain the concept of outsourcing.
The practice of hiring external firms to perform tasks or services that could be done internally.
Name benefits of globalization.
- Access to larger markets
- Lower production costs
- Increased efficiency
- Enhanced innovation
What is offshoring?
The relocation of business processes or production to another country, typically to reduce costs.
Describe the role of multinational corporations.
Companies that operate in multiple countries, driving economic growth and globalization.
What is a global supply chain?
A network of production and distribution processes that spans multiple countries.
Explain the concept of cultural homogenization.
The process by which local cultures become similar to a dominant culture, often due to globalization.
Name factors driving globalization.
- Advances in technology
- Trade liberalization
- Economic policies
- Cultural exchange
What is technological advancement?
Improvements and innovations in technology that facilitate globalization.
Describe the role of transportation.
Transportation systems enable the movement of goods and people across borders, facilitating trade.
What is financial globalization?
The integration of national financial markets into a global market.
Explain the concept of free trade.
The unrestricted exchange of goods and services between countries without tariffs or trade barriers.
