Globalisation Flashcards
What does outsourcing mean?
obtain (goods or a service) by contract from an outside supplier.
What does relocation mean?
the action of moving to a new place and establishing one’s home or business there.
Give some reasons why companies may relocate?
These are labor and work force issues, the desire to reach new markets, the need to upgrade facilities or equipment, the desire to lower costs or increase cash flow, and considerations about quality of life.
What does globalisation mean?
It’s the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.
Explain how countries are interconnected.
Cultural and economic globalization have caused countries to become more connected politically. Countries frequently cooperate to enact trade agreements. They work together to open their borders to allow the movement of money and people needed to keep economic globalization working.
What does market globalisation mean?
It’s a framework that allows companies to market their products and services to people around the world with little interference in the marketing materials or campaigns. Because of this strategy, companies can benefit significantly from the streamlined marketing process of globalization.
What is the globalisation potential of an industry
High levels of trade, competitive diversity, and interdependence increase the potential for industry globalization.
What are the four types of globalisation drivers according to George Yip?
- Cost drivers.
- Government drivers.
- Market drivers.
- Competitive drivers.
What do market drivers imply?
Markets throughout the world are becoming similar.
What are the main advantages of globalisation according to its supporters, for companies?
- Easily trade
- Relocate
- Invest directly and more easily in foreign countries
What are the main advantages of globalisation according to its supporters, for consumers?
Inexpensive imported goods
What are the main advantages of globalisation according to its supporters, for nations?
Better living standards
What organisations support globalisation?
WB, IMF, WTO, OECD, WEF (World Economic Forum)
What is the World Economic Forum?
It’s a Swiss non-profit organisation
Objective: Improve the state of the world by engaging business, political, academic and other leaders of society
What does NPO stand for? What is it?
Non-profit organisation, it is a legal entity organized and operated for a collective, public or social benefit, in contrary with an entity that operates as a business aiming to generate a profit for its owners
