Explain what is meant by Globalisation. Using examples, analyse the impact of globaisation on the way firms do international business

Question 1

What is in the intro? (4)

Answer 1

. Held et al (1999) the speeding up of worldwide interconnectedness

1. Growing of emerging markets: developing countries = higher standard of living
2. Speed of innovation: new companies = new products and improvement
3. More informed buyers = consumers know more coz communication
4. Increased competition = coz developing countries r developing. Western companies need to keep up

Question 2

The impacts Globalisation has on the way firms do business

Answer 2

1. Outsourcing
2. SRM
3. Advancements in technology
4. Lower Tarrifs

Question 3

Outsourcing: Ads, EG, Disadvantage

Answer 3

Ads: Companies can take advantage by hiring talent from low-cost countries = core competencies

EG: Morgan stanley (2017) hired ppl from asia saved $1 billion. too many in high cost

Dis:1200 jobs

Question 4

SRM: Ads, EG, Dis

Answer 4

Ads: Work with new talents across the globe= they bring in new ideas etc

Dis: Managing them + Cultural differences

EG: Morgan Stanley have a supplier risk programme = due dilligence + minimising risk

Question 5

Advancements in technology: Ads, EG and Dis

Answer 5

Ads: Increase in communication + better resources + before it took weeks to travel from Scotland to Ldn via canal. Get to know different cultures

EG: Global Networks eg CNN. New around the world

Question 6

Lower Tariffs

Answer 6

Ads: Core Efficiency

EG: EU= no tariffs