Multinational And Globalisation Flashcards
What’s a multinational?
These are businesses that operate in several countries
This means selling their products or have their goods produced in several countries.
What’s globalisation?
The way the world is becoming more interconnected due to increased trade and cultural exchange
What are the benefits/opportunities from globalisation (or from being a multinational)?
• Selling products in more countries increases revenue and should increase profits.
• Having your goods produced in other countries can provide lower costs
(e.g. lower wages and cheaper land and buildings and cheaper suppliers)
What are the threats from globalisation?
More competition from businesses in other countries, who may be able to charge lower prices due to lower running costs
What’s an exogenous shock?
These are unexpected events that seriously affect the running of the business.
What is fair trade?
Paying a reasonable amount to farmers instead of forcing them to accept extremely low prices. This allows the farmers to have a better standard of living, as well as supporting good causes in those parts of the world.
What is business ethics?
Ethical behaviour means treating stakeholders and the environment in a way that is morally right. The main stakeholders of a business are its employees, suppliers and customers
What is a pressure group?
An organisation that tries to persuade businesses, consumers or Governments to act in an ethical way, or in a way that supports a particular cause.
