globalisation Flashcards
what is globalisation?
globalisation is the increasing integration of different countries
what is the main driver of globalisation?
the main driver of globalisation is business
what are the other drivers of globalisation?
the other drivers of globalisation are:
- rising living standards
- less protectionism
- lower transport costs
- digital communication
- market liberalisation
- diverging consumer cultures
why are businesses the main driver of globalisation?
businesses are the main drivers of globalisation because multinational … want to increase:
- sales
- profits
- shareholder value
what is happening to the barriers of international international barriers?
the barriers to international businesses are lowering and falling
why is rising living standards a driver of globalisation?
rising living standards is a driver of globalisation because of the increased demand for imports
(also linked to diverging consumer cultures)
what are the alternatives to globalisation?
the alternatives to globalisation are:
- establishing production sites overseas
- licence technology
- joint ventures
- franchising
- outsourcing / offshoring
- selling directly to other countries using e-commerce (online shopping)
what drives multinationals to expand?
higher profits
what are the causes of globalisation?
the causes of globalisation are:
- falling costs of international transportation
- reduction in barriers to trade
- an increase in foreign direct investment (FDI)
- liberalisation of domestic markets
- greater resource mobility
- technological develpments
how does falling costs of international transportation lead to globalisation?
the introduction of enormous shipping containers allows for significant economies of scale reducing the unit costs of sea transport
how does a reduction in barriers to trade lead to globalisation?
the WTO has conducted a series of negotiations called rounds) to encourage freer trade between countries
how does the liberalisation of domestic markets cause globalisation?
the liberalisation of domestic markets has changes the ways in which many countries operate their markets and has encouraged FDI…
