globilisation

Question 1

what does globilisation involve

Answer 1

buying and selling good in different countries.
the movement of people country to country
movement of finance / capital

Question 2

how has it increased

Answer 2

bigger planes
transport
boxes can be tranported easliy
telecommunication has improved too

Question 3

free trade movement

Answer 3

eu- 27 states, free movement of people, and free trade
WTO- encourages countries to trade
nafta- north americas version of eu

Question 4

impacts of globalisation

Answer 4

growth of TNCs

Question 5

advantage- sales

Answer 5

selling in different countries increases the size of the market
raise sales and revenue

Question 6

advantage- spreading risks

Answer 6

if a market is lost in a recession then there would be another market that is safe

Question 7

advantage-lower costs

Answer 7

they could assemble goods in low income countries this is cheaper

Question 8

advantage- tax avoidance

Answer 8

they could set up headquarters in countries that have low taxes e.g. luxembourg

Question 9

advantage-creating demand for host country business

Answer 9

may employ people
taxes etc.
tncs may buy supplies, infrastructure etc.
opportunities e.g cleaning business trash etc

Question 10

advantage- taxes and services

Answer 10

may pay taxes, this will support the government for investmenrs . prosperity

Question 11

advantage- lower cost

Answer 11

TNC can offer goods and services at lower rates

Question 12

businesses closer - disadvantages

Answer 12

local businesses may not be able to comoete with larger TNCS less variation in market
tncs may pay higher wages than local business, less worker etc.

Question 13

outflows

Answer 13

TNCS may move profit to other country.

limited benefits

Question 14

benefits of uk businesses locating abroad

Answer 14

lower labour cost- e,g china

lower costs technology- other countries may have better technology than the uk as in the uk there is not much technology.

lower costs - lands, rent etc.

expertise- more engineers in japan etc.

demand- there is a high demand for vegan shizz in scandies. e,g electro cars in denmark

Question 15

disadvantages of uk businesses locating abroad

Answer 15

quality control- it is hard to control quality from a place far from head office. low skilled workers etc. china

communication- more difficult, language barrier etc.

transport- the raw materials and final product must be transported
loss of sales- worker in the uk become unemployed, this means less sales and more poverty.
access to skill labour-
costs- wages could increase and it could be more effective to keep business n the uk. e.g south Korea
environment- go figure, transport boats etc.

Question 16

location and evaluation

Answer 16

businesses need to compare the benefit of having businesses abroad or keeping it in the UK.
Needs to weigh up the benefits.

Question 17

international branding

Answer 17

this includes logo, in-mage and language]

burger king poopoo smoothie from china

Question 18

income

Answer 18

would you sell verace in syria and abbidas in switzerland

Question 19

bribery

Answer 19

some countries accept the briberies.

in the uk they do not

Question 20

legal factors

Answer 20

you cannot advertise 18 year olds drinking alcohol in america as you must be 21+ to drink

Question 21

location evaluation

Answer 21

some firms are moving back to the uk after benefiting from low cost in others for many reasons.
increase in wages in china
tarriffs increase in Nigeria

Question 22

4 p

Answer 22

when marketing
place , promotion, pricing must be considered
india’s chicken burger’s in macdonald’s

Question 23

marketing

Answer 23

product may change to suit the country
coco cola coffee in france
promotion correct celebrity endorsement, e.g kim k in ameria , keith lemon in the uk
prices- prices may be high in sweden but low in tanzania

Question 24

human resources

Answer 24

do you recruit locally or intrenationally
communication]- ict
minimum wages
laws

Question 25

operation

Answer 25

may change from batch to flow to compete against businesses who hire abroad.
face to face selling
quality of goods
location may change
made in uk - reliable

Question 26

finance

Answer 26

may need to do overdraft to buy for short term reasons e.g promotions in other countries
long term- investments in premises
wages change from country to country
break even analysis- should forecast how much they need to spend

Question 27

productivity

Answer 27

unit/ output per worker