Unit 6.3 Globalisation Flashcards
What does globalisation involve?
1) Buying and selling goods and services made in different countries
2) The movement of workers from country to country
3) The movement of capital or finance from country to country
How has globalisation been encouraged by improvements in what?
1) Transport
2) Telecommunications and the internet
3) Free trade arrangements
What is the impact of globalisation on businesses?
1) The growth of multinational companies
2) Influences on business location
3) International branding
4) How businesses compete internationally
What are the advantages to a business of being a multinational company?
1) Increasing sales
2) Spreading risk
3) Lower costs
4) Tax avoidance
What are the benefits of multinational businesses to the host country?
1) Creating demand for host country businesses
2) Taxes and public services
3) Lower prices and costs
What are the disadvantages of multinational businesses to the host country?
1) Business closures
2) Outflows of money
What are the benefits to UK businesses of locating in another country?
1) Lower costs (labour)
2) Lower costs (technology)
3) Lower costs (properties and land)
4) Expertise
5) Skilled workers
6) Demand
What are the disadvantages to UK businesses of locating in another country?
1) Quality control
2) Communications
3) Transport
4) Loss of sales
5) Access to skilled labour
6) Costs
7) The environment
What do businesses need to consider when creating or promoting their brand?
1) Language
2) Names
3) The level and distribution of income
4) Legal factors
5) Bribery
What in marketing mix will be considered?
Product, Price, Place, Promotion
What human resources issues will need to be considered?
1) Recruitment, training and motivation
2) Communications
3) Employment law
What changes to business operations may need to be considered?
1) Production processes and technology
2) Quality of goods
3) Sales processes and customer services
4) Business location
What will need to be considered about finance?
1) Sources of finance
2) Costs
3) Break-even analysis
What will need to be considered about exchange rates and how businesses compete?
1) Exports
2) Imports
What influences on a business need to be considered?
1) Ethical and environmental considerations
2) The economic climate
