Globalisation and international marketing

Question 1

Globalisation

Answer 1

the growing trend towards worldwide markets in products, capital and labour, unrestricted by barriers

Question 2

multinational companies

Answer 2

businesses that have operations in more than one country

Question 3

free international trade

Answer 3

international trade that is allowed to take place without restrictions such as ‘protectionist’ tariffs and quotas.

Question 4

tariff

Answer 4

tax imposed on an imported product

Question 5

quota

Answer 5

a physical limit placed on the quantity of imports of certain products.

Question 6

international marketing

Answer 6

selling products in markets other than the original domestic market

Question 7

Why sell products in other countries

Answer 7

1. Saturated home markets - market stops growing and competition is severe.
2. Profits - rapid sales growth and low costs of operation and create high profitability. + low labour, property costs, low tax levels.
3. Spreading risks - sales and profits of a business are much less dependent on economic and legal constraints in the home country
4. Poor trading condition in the home country - fell due to banking crisis
5. Legal differences creating opportunities abroad - fewer restricted countries

Question 8

Benefits and strategic opportunities of globalisation

Answer 8

1. Greater opportunity for selling goods. Opening up new markets, not saturation, give chance of higher sales, economies of scale and improved profitability.
2. Increaed competition gives firms that i