Globalisation (Unit 2) Flashcards
What is Globalisation?
The process of countries around the globe becoming more interconnected; more trade is more done internationally & the world’s economies are closer.
How has Globalisation been helped
The use of technology & the growth of communication of e-commerce.
What can Globalisation allow a business to have?
It can allow businesses to increase their target market as business can do their activities worldwide
How can Globalisation help to reduce production costs?
It can bring business access to cheaper goods & raw materials which can reduce production coats
Hoe can Globalisation help lower country wages
As a country have a relatively high wage, this means savings can be made by outsourcing to countries with lower wage rates.
How can Globalisation help businesses reduce its labour costs?
Some businesses have chosen to change location to be nearer to suppliers & reduce cheap labour.
How can Globalisation affect the businesses?
Businesses will have a high competition around the globe which can reduce the number of jobs because of high labour costs which can increase cost production.
How can Globalisation result into jobs loses?
If the production costs are high in its local country, then a business might relocate that can result into job loses in the local country.
What is Tariffs?
Tariffs are taxes that imposed on imported goods brought in from other countries.
How can increase tariffs effect on consumer spending?
If tariffs are too high, then there may be no cheap imports that will result in the cost of buying the goods which reduces consumer spending.
What is a Trade Block?
The agreement between a group of countries, who agree to trade freely between themselves paying no tariffs but a free together to charge tariffs from other that agreement countries
What are the examples of Trade Blocks?
-European union
-ASEAN (Association of South-East Asian Nations)
-NAFTA (North American Free Trade Association)
What are the benefits of Globalisation?
-Increase Target Market
-Increase Sales
Improve Technology & Digital Technology
-Improved Transport
-Access cheaper raw materials
-Cheaper Labour
What are the drawbacks of Globalisation
-Increase Competition
-Environmental Challenges
-Impacted by Exchange Rates
