Globalisation Flashcards
Globalisation
is a process by which countries and economies have become more interconnected or the world coming together to trade in each others markets
Advantages of globalisation for businesses
-economies of scale
-reduction in monopolies
-reduced poverty
-risk migration
Challenges of globalisation for businesses
-increased competition
-cultural barriers
-Economic dependency
-Environmental and ethical issues
What other factors have facilitated globalisation
- the internet
-E-commerce
-Communication technologies such as smart phones
-The rise of multinationals
Multinationals
A business that has activates and operations in more than one country
Advantages of multinationals
-can enter a new market with less competition
-Can take advantage of low wages
LEDCS
low economic developed countries
MEDCS
More economic developed countries
Global strategy
a plan of action on a world wide scale
Global brand
A brand that is recognised throughout much of the world
Challenges of globalisation
-communication
-Increased competition
-Adapting to other cultures
-physical market
International trade
This refers to to selling across borders i.e. the exchange of good
why do countries trade internationally
-for variety
-to grow
-to specialise
economic efficiency
the development of export markets can enable a business to gain economies of scale
Tariffs
Tax you have to pay when you import
