globalisation Flashcards
Globalisation
What is Globalisation
This is the growing interdependence of the worlds economies, cultures and populations brought across by cross border trade in goods and services, technology, invetsments and people.
Globalisation
What is a global Market
This is one that invloves the buying and selling of goods and services in all countires around the world
Globalisation
What is a developing market
This is one that is a growing economy and a growing consumption population. The market is expected to develop at a relativley fast pace
Globalisation
Factors which contribute to Globalisation
- Trade liberalisation
This is the removal of trade barriers - Political change
- Reduced transportation/ Communication costs
- Increased significance of global companies
- Increase migration
- Growth of labour force
- Structural change
The effect of Globalisation
What are the effects on businesses and stakeholders
Benefits
* Easier to sell all products
* Access to cheaper raw materials
* Access to cheaper labour
* Change locations
Drawbacks
* UK businesses have increased competition
* Exchange rates will impact sales
* Risk of becoming unethical
Global Growth
What is Glocalisation
This is acting locally. Businesses that engage in a global market strategy do not differentiate elements of their marketing mix to meet the needs of local customers. This is one that considers local tastes customs and traditions by considering prefrences of consumers
Global Growth
Strategies to acheive global growth
Global Branding : This can be done with businesses that have a established strong brand identity in their domestic market and are then able to introduce their product based on the recognition of their brand
External Growth: This can be done by merging or aquiring a business in another country
Multinational companies
What is a Multinational company
This is where they have facilities and other assets in at least one country other than its home country. They have started to dominate the global economy
Multinational companies
Why do Multinational companies exists
- Popularity of the goods and services they provide
- Well-known brand names make it easier to grow
- Finance is available to further expansion
- Success in home markets
- Demand for product in other markets
- Deregulation of markets and free trade agreements
Multinational companies
Multinational companies benefits and drawbacks
Benefits
* Increase potential customers
* Access to cheaper suppliers
* Access to cheaper labour
* Access to wider range of skills
Drawbacks
* Exploitation of workers
* Enviromental damage
* Market domination
* Tax avoidnace
