Globilisation Flashcards
What is Globilisation
Globilisation refers to the increased inter connectivity and interdependence between countries due to the expansion of international trade
Factors that made Globilisation occur
Improvements in information and communications technology:
Modern communications allow for instant contact with suppliers,customers and international branches of the business
Improvement in transport:
Improvements in shipping and the airline industry have led to more efficient transport of goods across the world.
International bodies and agreements:
Organisations such as World Trade Organization (WTO) and the EU have actively encouraged international trade and the growth of transnational companies
Contributing factors to Globilisation pt.2
Transnational companies (TNC):
Have their head office in one country but operate in a number of different countries. Ireland benefits from foreign direct investments (FDI) from many TNC’s located here
Global companies see the world as one market. They sell a standardized good or service throughout the world. This allows them to mass produce, benefiting from economies of scale. They may have a global marketing mix
Positive impact of Globilisation on consumer choice
Reduced prices: these companies benefit from economies of scale and mass production. This allows them to reduce the cost of production and hence reduce prices for consumers. This improves the standard of living
Negative impact of Globilisation in consumer choice
Standardized products and services: the same products and services can be found across the world. This can lead to a loss in unique cultural products and traditions
Positive impact of Globilisation on consumer behavior
Consumer power: consumers can use their influence to encourage positive changes in production methods r.g they may decide to boycott a company that uses child labour
Negative impact of Globilisation on consumer behavior
Waste: mass production and cheaper products lead to a culture where it is easier to dispose of and replace a product that repair it
INformation and communications technology
ICT refers to any technology used to send,receive,store,analyses and share information
ICT impacts the way we shop for and consumer products or services
Impact of online shopping on consumer choice
Consumers can krder from retailers in Ireland and abroad which vastly increases their choice
May result in small,local businesses shutting down which reduces choice in their own area
Impact of online shopping on consumer behavior
May lead to more informed consumers as they compare prices and reviews easily
Consumers must be aware of scams e.g fraudulent websites
Impact of communication technology on consumer choice
Consumers needs and wants can be communicated to the company
Consumers are aware of special offers
Impact of communication technology on consumer behaviour
May lead to increased impulse buying as advertising is more effective
Impact of loyalty cards on consumer choice
Consumers may receive more targeted, relevant offers based on the information gathered
Impact of loyalty cards on consumer behavior
May lead consumers to become loyal to the company as they receive awards for buying from them
Consumers should consider the General Data Protection Regulation (GDPR) and the information they want a company to have about them
Impact of online banking on consumers choice
Consumers may find it more convenient to access banking services online due to limited opening hours
