Globalisation 2.4 Flashcards
what is the definition of globalisation?
companies operating internationally or on a global scale
what are the advantages to globalisation?
access to more customers
potential for more sales/profit
potential to grow product range
increased brand awareness
what are the disadvantages to globalisation?
increased responsibility
more risk
potential for failure
decrease in skilled manufacturing
what is outsourcing?
when a business pays another firm to produce thebusiness’ products
What are Great Britain the world leaders in for globalisation?
biotechnology + pharmaceuticals
what are exchange rates?
the price of one currency expressed in terms of another currency
what are imports?
products purchased from other countries
what are exports?
products sold to businesses + consumers in other countries
what are the benefits if a country’s currency goes up?
good for consumers
good for businesses that IMPORT raw materials (buy more for same converted price)
what are the drawbacks if a country’s currency goes up?
bad for businesses that EXPORT
bad for local businesses that can no longer compete against cheap IMPORTS
what are the benefits if a country’s currency goes down?
good for businesses that EXPORT (goods=cheaper, sales increase)
good for local businesses (can now compete against cheap exports)
what are the drawbacks if a country’s currency goes down?
bad for consumers
bad for businesses that IMPORT raw materials
