globalisation Flashcards
1
Q
what is globalisation
A
the process that enables products, financial, and investment markets to operate
2
Q
what are three aspects of globalisation
A
- increased trade in goods
- increased movement of labours between countries
- increased movement of financial capital
3
Q
what factors have led to globalisation
A
- deregulation of markets
- political changes
- trade liberalisation
4
Q
who benefits from globalisation
A
- consumers: more choice, lower prices and better quality
- developing countries: increased wealth from exporting goods
- international businesses: lower costs, economies of scale, more opportunities
5
Q
who is negatively affected by globalisation
A
- unskilled workers due to job losses
- small businesses: struggle against large competition
- the environment: increased deforestation, pollution and global warming
6
Q
what is global branding
A
a strategy where businesses market products using the same brand identity worldwide e.g. apple, coca-cola
7
Q
advantages of global branding
A
- economies of scale
- strong brand image
- less marketing
8
Q
negatives of global branding
A
- cultural differences
- risk of brand reputation being damaged
9
Q
what is a multinational corporation
A
a business that operates in multiple countries either through manufacturing, retailing or services
10
Q
what is outsourcing
A
- using external firms to handle business operations e.g. call centres in India
- relocating production to lower-cost countries e.g. apple in China
11
Q
how do multinational businesses benefit host countries
A
- more job creation
- economic growth
- tax revenue to government
12
Q
drawbacks of multinational corporations
A
- exploiting workers: low wages, working conditions
- loss of local culture
- tax avoidance
