2.4 - Globalisation Flashcards
What is Globalisation in business?
Companies that operate internationally
What is international trade?
The process of buying from and selling to countries overseas
What does importing mean?
Purchasing goods or services from overseas and bringing them into your country
What does exporting mean?
Selling products and services to other countries overseas
What does the acronym SPICED mean?
Strong
Pound makes
Imports
Cheaper
Exports
Dearer (more expensive)
What does the acronym WPIDEC mean?
Weak
Pound means
Imports
Dearer (more expensive)
Exports
Cheaper
What are some advantages to a business increasing the scale of its operations?
Access to more customers
Potential for more sales and profit
What are some disadvantages to a business increasing the scale of its operations?
Increased repsonsibility
More risk
Potential for failure
What are Multinational companies / transnationsal corporations?
Companies that operate in a number of countries around the world
What does ‘glocalisation’ mean?
Adapting products to suit consumers in different countries
What are the main two trading barriers?
Tariffs and trading blocs
What are tarrifs?
Tax on imported goods an services
What are trading blocs?
A group of countries that work together to provide speical deals for trading
