Multinationals And Gloablisation

Question 1

What are multinationals?

Answer 1

These are businesses that operate in several countries

This means selling their products or have their goods produced in several countries.

Question 2

What is globalisation?

Answer 2

The way the world is becoming more interconnected due to increased trade and cultural exchange.

Question 3

What are the benefits of globalisation?

Answer 3

• 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)

Question 4

What are the threats of globalisation?

Answer 4

More competition from businesses in other countries, who may be able to charge lower prices due to lower running costs

Question 5

What are exogenous shocks?

Answer 5

These are unexpected events that seriously affect the running of the business.

Question 6

What is fair trade?

Answer 6

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.

Question 7

What are business ethics?

Answer 7

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

Question 8

What is a pressure group?

Answer 8

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.