Lesson 6-Causes of Globalisation and why it has accelerated Flashcards
What are TNCs agents of?
global change
How do TNCs link groups if countries together?
Through the production of goods
What type of industries use parts sourced from many different countries?
Large assembly industries-contribute to the finished products
How do TNCs form connections between people in different countries?
They shape common patterns of consumption
What groups can held and/or hinder countries?
Trade blocs
What strategy do some of the worlds biggest brands use as their strategy?
Outsourcing
What series of arrangements has outsourcing as their strategy?
Global production network
What is it known as when a business intends to maximise their profits by adapting their products to suit local tastes?
Glocalisation
Give the definition of outsourcing
The delegation of one or more businesses processes to an external provider, who then owns manages and administers the selected processes to an agreed standard
What is the main reason for increasing outsourcing?
It is a way of reducing costs
When did international outsourcing had become a viable alternative for many large companies to consider?
Late 1980s
List the top 5 outsourcing destinations
1.India
2.Phillipines
3.China
4.Ireland
5.Brazil
Give two benefits of outsourcing
.Cost savings
.Tax benefit
.Access to talent
How many people work for AstraZeneca in how many countries?
50,000
100 countries
Give two drawbacks of outsourcing
.Cross-cultural differences
.Communication problems
.Cost Vs Value
