Global Business

Question 1

Globalisation

Answer 1

is a term used to describe how trends and technologies have made the world into a more connected place.

Question 2

Multinational

Answer 2

is a powerful and a very large company that has stores, offices, etc…, in many different countries and it produces and sells goods in the same place.
Multinationals have their headquarters in a single place while they Relocate subsidiaries.

Question 3

OFFSHORING

Answer 3

is when a factory sends internal jobs to be produced in another country (for. example in tax haven), usually to pay less tax.There are 2 genre of offshoring: production and service;
production = involves relocation of physical manufacturing processes overseas, f.ex. to a low cost destination (china, Philippines, etc..)
service = ex. call center in Albania;

Question 4

RESHORING

Answer 4

is the opposite of offshoring; ex. This happens when the host land doesn’t give more economic advantages and the factory is taken back to its headquarters.

Question 5

advantages and disadvantages in the host country?

Answer 5

advantages are: multinationals invest more money in a host country, give new jobs opportunities, improve the local infrastructure, etc…
disadvantages are: encourage political corruption, remove jobs from their home country, etc…

Question 6

tax haven

Answer 6

tax haven

Question 7

Why companies become multinational?

Answer 7

there aren’t any trade barriers;

raw materials and cheap labour

Question 8

Supporters of Globalisation

Answer 8

The benefits of globalization are:
Access to New Cultures
Lower Costs for Products
Access to New Markets

Question 9

critics of Globalisation

Answer 9

the population loses its culture, its uses and customs;
It brings no real benefit to poor country;
the gap between poor and rich increases.