Chapter 1: What is Globalisation in Business Flashcards
What is International Business?
the business activity that is conducted by two different or more countries (across the border).
What can be the definition of Globalisation?
The shift toward a more integrated and interdependent world economy
What is The Globalisation of the Market?
The merging of historically distinct and separate national markets into one huge global marketplace.
What is the cause of the globalisation of the Market?
The number of convergence of buyer preferences in the world getting higher. In other words, the preferences that we have in our life become similar and alike
What is the benefits of the globalisation of the market?
Reduces marketing costs (There is no need to recreate adverts), Creates new market opportunities (once they are recognised worldwide, it is easy to seek new markets), Local buyers’ needs (Specialising in the products), Global Sustainability
What is the definition of Globalisation of production
The sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (labor, land, capital)
3 benefits of the globalisation of production. Mention one example of the globalisation of production!
Access lower-cost workers; access technical expertise; access production inputs.
Example: Hospitals now routinely send X-rays via the Internet to be read in India and some insurance companies even recommend having certain procedures conducted in foreign countries
What Drives Globalization?
Falling of trade barriers and technological advancement
What is WTO’s role?
WTO was born to continue the legacy of GATT which provides a forum for dispute resolution and the enforcement of trade laws and has set new goals for further reducing trade barriers on industrial goods, services, and agricultural products
What can Technology advancement do to drive globalisation?
Innovations in information technology and transportation methods are making it easier, faster, and less costly to move data, goods, and equipment around the world.
How does globalisation affect jobs and wages?
Critics of globalization worry that jobs are being lost to low-wage nations. In other words, jobs in advanced countries will vanish due to the shifting of jobs to an advancing country
Supporters also argue that globalization means lower prices, more economic growth, and more jobs
How does globalisation affect labour policies and the environment
Critics argue that the globalisation will cause decreasing working standards in developing countries where the labour regulations are different in developed countries
Supporters believe that Foreign Direct Investment encourages developing countries to raise their labour regulation standards
