Globalisation

Question 1

Define Globalisation

Answer 1

Refers to the way countries are more connected politically, economically and socially
It is a move towards an intergated world
Change of a business from being associated with one country to multiple countries

Question 2

What are the two types of globalisation

Answer 2

Market and Production

Question 3

Explain market globalisation

Answer 3

Decline in barriers to sell in other countries
Easier to sell internationally
Need to take culture into consideration

Question 4

Explain production globalisation

Answer 4

Sourcing materials and services from other countries to gain a price advantage
Lower prices for consumers
Impacts employment levels in source country

Question 5

Individual effects of globalisation

Answer 5

Improved roads and transportation
Improved healthcare
Improved education
Negative impact on developed nations as people leave to developing nations

Question 6

Corporate effects of globalisation

Answer 6

Dicates product life cycles
Developed countries suffer economically as developing nations have cheaper resources

Question 7

Governmental effects of globalisation

Answer 7

Companies invest in countries with lower interest rates
Trade policies must be mutually beneficial and strike a balance

Question 8

Advantages of Globalisation

Answer 8

Increased competition
Lower prices
Better variety of goods
Job creation in developing countries
Improved standard of living in developing countries

Question 9

Disadvantages of globalisation

Answer 9

Multinationals can have a negative impact on developing countries
Skilled labour moves out of developed countries
Wages too low
Poor working conditions in developing countries
Advantaged the rich
Cultural dilution