3.4: Globalisation Flashcards
3.4.1: Globalisation (18 cards)
What is globalisation?
A trend towards worldwide markets in products, capital, and labour, creating economic interdependence between countries.
What are key features of global markets?
Free movement of goods/services, labour, capital; shared technology; rise of MNCs; interdependence between nations.
Give three characteristics of emerging markets and Why are emerging markets attractive to businesses?
Rapid industrialisation, movement away from the primary sector, and increasing quality of life.
They offer lower labour costs, growing economies, rising consumer income, and investment potential.
Name four reasons for the growth of globalisation and How has the internet boosted globalisation?
Deregulation of markets, internet expansion, reduced transport costs, changing consumer tastes.
Enables remote working, faster communication, online payments (e.g. PayPal), and reduced costs.
What is deregulation and how does it impact trade?
Removal of rules/barriers in markets; encourages competition and entry of new firms.
What is containerisation?
Standardised system of transporting goods in large containers across multiple transport modes.
Why do MNCs exist? and List three reasons why a firm becomes an MNC.
To reduce costs via economies of scale, access subsidies, expand markets, and avoid trade barriers and To Increase market share, achieve economies of scale, avoid tariffs, expand into non-saturated markets.
What are 3 benefits of MNCs to host nations? and List 3 drawbacks of MNCs for host countries.
Foreign investment, job creation, transfer of technology and skills.
Exploitation of labour/environment, destruction of local competition, profit outflows.
What are the two approaches to global marketing? and What is global branding?
Standardisation (same marketing worldwide) or localisation (tailored to each market).
Using the same brand identity, name, and message across multiple countries.
What is external growth in a global context?
A: Mergers/takeovers of international firms to access new markets quickly
What factors must be considered when choosing a global target market?
Product adaptation needs, domestic competition, import restrictions, exchange rates
What are strategic alliances?
Partnerships with foreign firms to enter new markets and share expertise (e.g., Tesco–Ting Hsin).
How has globalisation affected competition in the UK? and How does globalisation offer growth opportunities?
Increased efficiency, lower prices, but also less job security due to cost pressures and Access to new markets, cheaper suppliers, joint ventures, economies of scale, global branding.
Summarise IKEA’s global success.
Operates in 49 countries with massive economies of scale, low costs, and global supply chains.
How does globalisation affect the environment?
Increases transport emissions, resource exploitation, deforestation, and pollution.
What is “coca-colonisation”?
Loss of national identity and cultural diversity due to global branding and Americanisation.
List 3 benefits of globalisation.
Lower import costs, economies of scale, new markets/customers.
List 3 drawbacks of globalisation.
Exploitation of workers/resources, job losses in developed countries, environmental harm.
