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level: Globalisation

Questions and Answers List

level questions: Globalisation

QuestionAnswer
What is Globalisation?-The Free Movement of Goods, People, Services, Capital [Money] and more. This allows Businesses to sell Anywhere in the World
How has the World Globalised?-The World is starting to become 1 Market -Technology, Economic Development and Travel Improvements has Enabled Businesses to have a Viable Approach to Sell Anywhere
What are the Advantages of Globalisation?-More Markets -Cheaper Labour - Cheaper Raw Materials -International Specialisation -More Efficient - as more Competition -Transfer of Knowledge and Skills, and Technology
What are the Disadvantages of Globalisation?-International Competitors may have Cheaper Costs [More Competitive] -Power of MNC's -Whole Industry may Close -UK has seen a Transfer from Manufacturing Sector --> Tertiary Sector [Goods --> Services] -Events in other Countries will Effect you! [Russia x Ukraine, Burma]
Why would International Trade be Relevant to the United Kingdom?-28% of Goods and Services we make are Exports [Sold abroad] but 30% of what we Purchase is Imported [From elsewhere]
What are Imports?-Goods and Services that are Brought into One Country from another
What Impacts can Imports Create?-Competition in UK Businesses Increase -Increase in Consumer Choice - leads to more Competition
What are Exports?-Goods and Services made in 1 Country, and are Sold into Another
Why may a Business want to Change Location?-Enjoy Lower Manufacturing Costs -Find more Skilled and Quality Supply -Exploit Existing Capacity Oversees -Exploit Free Trade Areas and Avoid Protectionism -Easier to Target International Markets
What is an Multinational Company? [MNC]-MNC's have Operations [Factories and Shops] in more than 1 Country
Advantages for being an Multinational Company?-Operating Closing to the Target Market - Lowers Transportation Costs and has Better Market Information -Lower Costs of Production - More Benefits to Operate Cheaply to provide Local Demand and also to Supply Demand in Host Country -Avoid Protectionism - Producing in a Host Country leads to Restrictions on Imports being Avoided [Protectionism just means to Protect Domestic Industry's from Foreign Industry's]
How may a Business Sell Overseas?-Exporting Directly - Stays in Host Country [E-Comerce] -Using Overseas Distributors and Agents - They help to Sell the Product - they know the Market -Setting up Overseas Business Units - Set up a Factory to make the Product - can have Subtle Changes to Match Local Needs -Buying a Business Overseas - Merger or Takeover allows Business to Exploit their Production Unit
How may the Marketing Mix be Affected by Expanding Overseas?-Customers will have Different Needs and Wants. Taste and Likes will be Different. Cultures, Religion may play a Role. -Price may have to Differ accordingly to Consumer Income Level, or Competition. Changed to meet Needs -Promotion will have to see the Cultural Difference. Need to make sure it will Reach them without Offending. Right Image, Translation and Platforms -Place needs to match Needs and Wants of Consumers. Tariffs may make it more Expensive to Import.