Global context ✔️ Flashcards
What is globalisation
The process by which businesses or other organisations develop international influence or start operating on an international scale.
How does the internet facilitate globalisation
It provides people from different country’s with a range of different information, as well as bring people all over the world closer together.
How does communication technology facilitate globalisation
It has reduce the costs of communication and also increases global communication flows.
How does e-commerce facilitate globalisation
It helps to reduce barriers to trade across borders.
How does trade liberalisation facilitate globalisation
It makes an economy more open to trade and investment so that it can then engage more directly in the regional and global economy
How does transport infrastructure facilitate globalisation
Improvements in transportation, e.g. larger cargo ships means that the cost of transporting goods between countries has decreased due to economies of scale. Transport improvements also mean that goods and people can travel quicker
How do multinationals facilitate globalisation
Multinationals establish multiple links between the economies of various economies. Using capital from developed countries, MNC’s will build factories and plants in developing countries where they can access raw materials and labour cheaply.
Why are some businesses more affected than others by globalisation
Some are affected more than others for a variety of reasons such as; physical, political, economic and environmental factors
What is the role of multinationals in globalisation
There role is to establish links between multiple different countries
Global strategy
A plan to help a company grow. From a international business to a global business that operates facilities like factories and distribution centres thought the world
How should a business should respond to the challenge of in creasing globalisation
- find suppliers and partners across the world at various locations
- dont rely on only one market
- partner with a reliable headhunting company
- embrace modern technology
Opportunities of globalisation to a business
It allows companies to find lower-cost ways to produce their products
- helps businesses to be able to benefit from economies of scale
- there will be a increase in capital flows
- increased labour mobility
- improvement in international relations
Threats of globalisation to a business
- businesses will be vulnerable to external shocks from other countries
- businesses will face problems with inflations from other countries
- businesses will race to the bottom to produce and sell the cheapest products
- products may become standardised
- dominant global brands may cause high barriers to entry
Global branding
The process of creating a brand image that’s consistent in marketing all over the world.
Opportunities of a rise in the number of global brands
- increase brand reach
- increase in brand value
- finding new opportunities become easier
- Improvement in brand perception
- increase in bargaining power
- overcomes local and global competitors
