U2

Question 1

Forces driving globalisation

Answer 1

• cost factors
• market factors
• technology factors
• global business cycle

Question 2

Explain cost factors

Answer 2

Companies are looking for cheaper labour and manufactiring costs, so the outsource production to other countries

Question 3

Explain market factors

Answer 3

As domestic markets become saturated, so emerging markets offer new opportunities

Question 4

Technology Factors

Answer 4

The internet makes comparision of supply chains easly for manufactures

Question 5

Compny strategies in face of globalization

Answer 5

• import/export - lower risk, but also lower profits
• outsourcing - long time constactual agreement
• FDI (Foreign direct investment) - the highest risk, bat gives the most control

Question 6

Global business Factors

Answer 6

• recovery (=upswing)
• growth (=explosion / boom)
• recession (= contraction / downturn)
• depression (=slump)

Question 7

political strategies in face of globalization

Answer 7

1. Being in favour of market forces and deregulation
2. Being in favour of subsidies and protctionism