Global Context

Question 1

What is globalisation?

Answer 1

The process of growth in world markets through a process of integration where it is possible to trade in a global market in the same way as a domestic market

Question 2

What are the drivers of globalisation?

Answer 2

• Containerisation/transport infrastructure
• Communications technology change
• EOS
• Global finance - removal of capital controls
• Different tax systems
• Less protectionism, free trade
• Rise of the mulitnational

Question 3

Characteristics:

Answer 3

• Greater trade between regions
• Increase in transfers of capital
• Development of global brands
• Outsourcing, offshoring
• Labour migration
• New nations joining WTO
• Increase in public spending
• More inter dependent world economy
• Complex supply chains

Question 4

What does a firm get out of globalisation?

Answer 4

• More customers, global branding
• EOS
• Lower wages
• Fewer legal constraints

Question 5

Benefits

Answer 5

• employment
• infrastructure
• training
• consistant image/products
• improve wealth of developing country
• more awareness of global issues
• ethics and csr

Question 6

Problems

Answer 6

• exploitation of workers: resources, environment
• little regulation
• crowding out local industries
• impose own ethics on local population
• profits sent back to another country
• loss of jobs
• homogenisation