2.1.3 Business and Globalisation Flashcards
What is globalisation?
when organisations and businesses trade internationally
What are exports?
when a business makes products in the uk then sells them to other countries
What are imports?
when products made overseas are brought into the UK
Why do many businesses relocate overseas?
Land and labour is cheaper
What is offshoring?
Work is sent overseas to a host country that welcomes the operation of foreign businesses
Why do some business locate to the UK to manufacture?
Wants British Skilled Labour
Benefit from being closer to European customers (no need to transport goods)
What is Multinational companies (MNCs)?
Businesses that operate and trade in more than one country
What does MNCs stand for?
Multinational companies
What can MNCs avoid?
import restrictions if operating in host countries
What do MNCs benefit from?
lower production costs by operating in developing countries
being closer to their customers in the host countries in which they operate
What is a tariff?
Tax added onto the selling price of an imported hood to make it more expensive to buy in the UK
What are trade blocs?
When certain countries group together to make it easier for members to market goods, services, capital and labour by getting rid of all barriers to trade
