KK6

Question 1

Globalisation

Answer 1

Globalisation is the effect of hi-tech communications, lower transport costs and unrestricted trade and financial flows turning the whole world into a single market.

Question 2

Positive affects of globalisation

Answer 2

new markets, lower costs for products, spread innovation, higher standards of living

Question 3

Negative affects of globalisation

Answer 3

job loss, worker exploitation, environmental degradation, become too dependent

Question 4

overseas competitors

Answer 4

Companies who are trying to sell similar goods or services to the same target consumers.

Question 5

Overseas Markets

Answer 5

Any markets that are outside of the business’s own country of operation.

Question 6

Offshoring of labour

Answer 6

Offshoring refers to the practice of moving some of a business’s processes or services to the same or another business located in an overseas country. This is usually done to take advantage of lower costs, including labour and transportation.

Question 7

Exchange rates

Answer 7

Exchange rate is the price of one country’s currency expressed in terms of another country’s currency. The exchange rates affect any financial transactions that a business may make as well as demand for its products and the price of imported materials.

Question 8

Patenting, copyrights and trademarks

Answer 8

Patenting, Copyrights and trademarks are used to ensure that competitors do not copy any creations of the mind that a business has developed, such as new inventions, designs or processes.

Question 9

Online sales

Answer 9

Online sales allow for a business to reach a larger scale of consumers by using the internet as it is easily accessible for everyone.

Question 10

Limitations of selling products in overseas

Answer 10

language barriers, harder in a legal point of view

Question 11

Benefits of selling products in overseas

Answer 11

increase brand reputations, reach a larger customer base

Question 12

Myer - exchange rate

Answer 12

The Aussie Dollar (AUD) has depreciated, with a 11 month low taking place in October 2023, against the greenback (US Dollar). This means when Myer is importing their electronics to sell, they will have to pass on the added costs.

Question 13

Apple - offshoring of labour

Answer 13

Apple is moving out from manufacturing in China. This is because when China joined the World Trade organisation in 2001 western countries thought it would make china more democratic, however that was not the case.