Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

business paper 1 > globalisation > Flashcards

globalisation Flashcards

1
Q

what is globalisation

A

how interconnected the world is
resulted in businesses operating in several countries across the world

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

GDP

A

gross domestic product
idicates size of nations economy
total makret value of goods and services within a market over a period of time
expressed per capita-meaning GDP divided by number of people in country
measures economic performance of a country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

other indicators of growth

A

literacy rate-literacy rate people over 15 year old

health-

human development index-average incomes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

economic growth

A

when economy growing, increase in demand for products

increase in employment opportunities

increase in peoples disposable income

people move out of poverty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what is an emerging economy

A

economy which is growing but not yet fully developed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

examples of emerging economies

A

MINT

BRICS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

international trade

A

importing and exporting

imports-products brough from overseas
money goes back to foregin business who brought it from
money flowing out of an economy

exports-products sold from overseas
money given by person who brought it too
money flows out of an economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

specialsiation

A

way to gain a competitive advantage
where busiensss narrow down range of products focuing on one or narrow range

adv-increases producivity and efficiency due to workers becoming skilled at making those specific products
speed they are produced and quality they are produced at increase

reduces cost per unit, allows price to be reduced, profit margin to be increased

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

dis of specialisation

A

changes in consumer trends, effect more as less to fall back on

extensive training to become specialsed at narrow range of products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

foregin direct investment

A

where one business invests into another business

need some type of managerical control

adv-increases access to makrets

first knowledge of nations legal system

advnatge of skilled local labour

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

trade liberslaition

A

removal of restrictures or barriers of trade

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

adv of trade libersliation

A

increases consumers choice

exports cheaper

raw materials are cheaper

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

dis of trade liberlisation

A

may force out smaller firms or doemtic firms out of business as not comeptiev enough

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

plotical change

A

government might change political system to one which supports trade liberilsation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

strutural changes to economic developemnt

A

primary industries-obtaining raw materials
secondary-manafacturer goods
teritary-finanical and health services
quarternary-it knowledge based services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

more people in the world are able to work

A

world population increasing, people living and working longer, more women at work
more people at work, people have more freedom to set up business operations wherever they want

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

protesctionism

A

where government helps protect domectic frims from foregin competiton

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

way of remember ways sof protectionsim

A

Social
Learning
Therory

subsides-fixed sum of money paid by government to help domestic firms
adv-can reduce their costs making them have lower pcires then inmports

dis-people having to pay more tax

legisaltion-laws placed by government to stop international trading
trade embaragos-banning trade altogtehr
trade sanctions-restricting trade

tarrifs and quotas
tarrifs-tax paid on particlar imported goods making peoople less liekly to import more
quotas-placing limits on amount of imported goods that can come into country

adv-helps domestic frims as face less compeition
dis-restricts consumer choice nad means customers may have to pay more for products
dis-lack of competition may remove incentive for domestic firms to imporve efficiency and quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

trading blocs

A

signed legal agreements betweeen several coutnerires to restict or remove trade barriers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

adv of trading blocs

A

being cheapest supplier in bloc

avaliabilty of skilled workers

access to new markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

dis of trading blocs

A

change regualtions to ones that fit trading bloc

smaller firms in trading bloc may be pushed out

buying products which are not within trading bloc may become more expensive

expensive to import products from counteries not within the bloc

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

push factors

A

negative effects in the domestic market

saturated makrets-wherer all demand is met, theres not much chance to grow
moving may create chance for new access to markets
moving to unsaturated overseas market may mean increase in sales

competition-may be highly compeitve where currently located
may be less demadn for prodcut in place aborad

23
Q

pull factors

A

postive factors about overseas markets

spread of risk-if demand goes down in one country, have less of an impact as oculd be high in another country

economies of scale-reduce their unit costs

24
Q

why would moving abroad increase a products life cycle

A

product may be in decline stage in one country but growth stage in another

25
Q

offshoring

A

branching out deparments into other counteirs

adv-imports andd exports cheaper
access of new skilled workforce
reduces costs

26
Q

reshoring

A

moving departments back
may be due to consumers noticing that busienss is exploting its workers

adv-easier to manage
importing and exporting is quicker as within same country

27
Q

what are the non financial benefits to a country

A

improve working conditions and pay, increasing standards of living
imporves infrastructure, imporving community

28
Q

dis of moving to another country

A

job losses and unemployment in orginal country

29
Q

outsourcing

A

contracting out business acitivities to other businesses

adv-reduced costs as not having to pay for full time workers
adv-might be able to accept contracts that they may have turned down
dis-cant monitor so chance that they produce something of low quality, negatively impacting repuation of business

30
Q

assessing a country as a market

A

how much disposable income country has-HIGH disposbale income so more people willing to spend rather then save
cultures and languasges simialr-therefore avoids any cultural and lanaguage barriers
laws-large amounts of regualtions coculd make trading more complicated
infrastrastructure-good infrasturcture if not may ahev to then spend moree money on imporving it
poitical stability-whetehr its politcally stable or not
if not, then peopels employment may be consistneyl changign and dont know how much money people will have
exchnage rates

remember-pile DC

31
Q

assessiing a country as a production location

A

PIC
political stability-is it politically stable
infrastructure-want imports and exports to be easily trasnported back adn forth
costs of production-often mean moving to country where pay forgin workers much lwoer wages
then would with UK employees
useful for businesses who dont need skilled workforce
land and office space also tends to be cheaper

32
Q

globa merger

A

two businesses from different counteries merge togeterh to create one business

33
Q

joint ventures

A

where 2 businesses remain as seperate entitiys but work on a joint project togetrh
where two or more businesses work togeteh on a joint project
they tehn share profits and equitys

34
Q

adv of being merger or joint venture

A

Spreading of risk-could have high risk of making costly kistakes moving into a busines it has little knowldge off
other business can help it by bringing good knowledge of local makret, consumer trasks etc
fall in demadn in one country will have less of an effect as could sgitll remain high in another country

Access to different markets-increases amount of consumers selling too

Securing resources and supplies-might ahve god relationship with a particualr supplier tgat the other firm might want, therefore beneficial to business

can obtain intellectual property-e.g copyrigths and patents which help protect business from being copied by others

beat competion-can join or mergw with competion meaning removes coemptior out of market

can achive eEOS, creating comepittive advanatbe to business

acroyn: SAS

35
Q

what ways can businesses imporve their compeitive advnatge in global competiton

A

generic stragies

cost leadership/competitiness-being cheapest
achieve EOS
difefrentiation-have USP

36
Q

what are the 3 types of global marketing stratgeies

A

ethnocentric

polycentric

genocentric

37
Q

ethnocentric approach

A

keeping mareting strategy simailr everywhere

adv-global more liekly to become loyal
adv-same products everywhere, acheive EOS
adv-less time and money spent on makret research
make it easier for firms to deal with suppliers and distibutors as well known

dis-risk of culture clashes
any negativity in one country can impact global brand

38
Q

polycentric approach

A

changing marketign stragey in each country to suit needs and wants of international makrets

adv-guaranteed sales as you know its suited to target audience
adv-no risk of culture clashes
dis-expensive as need lots of makret research
and time consuming
fewer chances to reach EOS

39
Q

geocentric approach

A

mixture of both
having global focus of ethnocentric approach but also identifying local factors under polycentric approach
adv-eos, global makes easier to supply and distbiibute as well known
dis-expensive to adapt

40
Q

product of global niche markets

A

level of expertise
increase quality

41
Q

price

A

can charge higher prices as specialsied

42
Q

promotion

A
43
Q

adv of global niche markets

A

face minimal competition, higher customer loyalty

products tend to be price ineasltic so can charge more premium prices

risks can be spread across many markets

44
Q

dis of global niche markets

A

low salves volume in cpmparison to mass markets

risk is high, fall in supply in one country can mean firms struggle to survive

45
Q

culture clashes

A

use makret research to assess social norms in a country

can adpat marketing mix to different cultures

46
Q

should also consider anguages wgen makreting abroad

A

making sure languages are right and are not misundersootf or inappropriate or offensive to consumers
may need langauge translators which can be expensive

47
Q

what are MNCS

A

businesses which operate in several counteries

48
Q

adv of MNCS on local economy

A

creates jobs
increases standard of living, reduces unemployment
improve infrastructure

49
Q

dis of MNCS on local economy

A

may explot their workers as see LEDS as a chance to pay lower wages due to less strict laws

increase pollution in country

50
Q

transfer pricing

A

where a busienss purposely charges higher prices to the counteirs they operate in with a lower tax rate
adn then lower prices to counteries they operate in with higher tax rate
this way they are gainign more profit, and gaining less tax to pay

51
Q

adv of MNCS on national economy

A

bring in it skills so once person leaves busienss, skills can then be transferred to other businesses

increase amount of entreprenurs as people can work out that they are capable of setting up their own business

imporvents FDI flows-increases amount of money flowing into and out of business
icnreases balance of payments
imporves balance sheet

52
Q

dis of MNCS on national econom y

A

may force domestic firms out of business

53
Q

what are ethics

A

rules and principles that state which bheaviours are acceptbale for society, individuals and groups

idea that mncs may take advnate of less strict rules in LEDS and decide to explout wrokers, lower working conditions and poorer pag
spening less on safty equipment
poor sanitation

54
Q

what are the 3 ways of controlling MNCS

A

government legisaltion-laws set by goverment to contorl MNCS

pressure groups-gorups of people who want to change behaviours of businesses
adv-raise awareness of issues quickly, prtcilaurly using soical media
dis-may not have ability to stop excessive behaviour, making them hve bad reputation and weaknening their influence against MNCS

social media
adv-quickly shares info about unethical practices
shared to wide amount of epeole

dis-not good in long term, people just scroll and move past it, may forget it within a few seconds

GPS

business paper 1 (54 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions