Unit 2.4 - Globalisation

Question 1

Define globalisation

Answer 1

The process by which businesses and countries around the world become more connected
A single business operating in lots of countries
A business can be based anywhere and can buy from and sell to any country

Question 2

Benefits of globalisation (4)

Answer 2

Access to a larger market
Increased sales
Easier to set up in other countries - reduce transport costs, closer to raw materials or don’t have to pay import taxes
Cheaper labour

Question 3

Drawbacks of globalisation (3)

Answer 3

Increased competition
Exchange rate impacts
Bad publicity - if setting up in foreign countries for cheaper labour or exploiting workers with poor work conditions

Question 4

Define exchange rates

Answer 4

One currency expressed in another - £s:$s

Question 5

Spiced

Answer 5

Strong
Pound 
Imports
Cheaper
Exports
Dearer

Question 6

Strong pound impact businesses

Answer 6

Price of imports is cheaper
Price of exports is dearer

If a business imports goods they will be better off but worse off when they export goods

Question 7

Weak pound impact businesses

Answer 7

Price of imports is dearer
Price of exports is cheaper

If a business imports goods they will be worse off but better off when they export goods