Chapter 1 - Global Buisiness Flashcards
1
Q
What is globalisation?
A
Globalisation is the growing interdependence among nations and encompasses a range of areas such as technology, trade, investment, flow of income
2
Q
Reason FOR globalisation
A
- Creates employment and investment developing countries and increased revenue
- creates a platform and international relationships that can be used to build standards for trade
- promotes competition
- improves quality and growth of education and training
3
Q
Reasons AGAINST globalisation
A
- widens the gap between rich and poor
- exploit the lack of environmental protection in some countries
- promotes a single culture as the basis for marketing a way of life; materialism
4
Q
Factors driving global business
A
- higher profits and market access in global marketing
- reduced technology barriers to movement of goods, services and factors of production
- countries with lower labour and production costs
- product life cycles by marketing products in other countries
5
Q
Financial Opportunities and Deregulation
A
- an increased number of financial transactions and investments in foreign countries has been a result of globalisation
- profit margins (an Australian wholesaler or retailer may go to a low-cost country to manufacture goods)
- success domestically (may reach saturation in product life cycle, strong financial position, low debt, strong position to go global)
6
Q
Patterns of Consumption
A
- consumers are more confident and likely to make online purchases
- businesses use technology to give customers access to avenues such as social media and group purchasing sites to shop, connect with businesses and increase loyalty
7
Q
Consumer behaviour factors that contribute to global business
A
- access to a greater choice of products
- widespread use of mobile devices
- widespread use of the Internet
- continued strength of the Australian dollar
- secure and reliable payment systems
8
Q
Technology and Globalisation
A
- IT provides the communication network that facilities the expansion of products, ideas and resources
- the internet, email, mobile photos, media
- globalisation accelerates the change of technology
9
Q
WTO
A
- World Trade Organisation
- growing authority over national governments with restrictions and controls
- sets standards for international trade and for countries in FTA’s
10
Q
Under WTO, FTA’s must:
A
- eliminate tariffs and other restrictions on all trade in goods between member countries
- eliminate substantially all discrimination against service suppliers from member countries (helping to increase trade in services)
11
Q
The WTO sets standards for global business including:
A
- transparency: clear information about policies, rules and regulations
- commitment to lower trade barriers and to increase access to global markets
- centralised databases of trade information
- trade facilitation: the simplification and standardisation of customs, procedures, removal of red tape and other measures to simplify trade between countries
12
Q
Employment Levels
A
- developed countries have lost jobs because of the use of labour in the developing world in such things as low-cost manufacturing and services
- movement of highly skilled people
13
Q
Spread of Skills and Technology
A
- globalisation spreads the knowledge of new inventions, innovations, business models and technology
- may take technology, design or process to a low-cost country
14
Q
International Cooperation
A
- accessing labour, technology, capital and distribution channels in other countries brings businesses together
- technology has made global cooperation easier
15
Q
Domestic Market
A
- not only compete with each other but also with imported goods
- online shopping and secure online payment systems
- easier for other companies to sell in Australia and increases the competition domestically
- global prices and customer demand impact on domestic businesses
