Globalization

Question 1

What is globalization?

Answer 1

The process where businesses, economies, and cultures become connected through trade, investment, and technology.

Question 2

How does globalization affect businesses?

Answer 2

It allows businesses to expand internationally, access new markets, and source materials or labor from different countries.

Question 3

What are the main opportunities of globalization for businesses?

Answer 3

+ Access to larger markets – Sell products worldwide.
+ Cheaper labor & materials – Reduce production costs.
+ Economies of scale – Lower costs due to large-scale production.
+ Technology & innovation – Faster access to new ideas and advancements.
+ Brand growth – Increases global brand recognition.

Question 4

What are the main threats of globalization for businesses?

Answer 4

• Increased competition – More rivals in the global market.
• Economic dependence – A crisis in one country can affect global trade.
• Exchange rate risks – Currency fluctuations can impact profits.
• Ethical concerns – Exploitation of workers and environmental damage.
• Legal & political risks – Different laws, tariffs, and regulations in each country.