External Influences

Question 1

Define globalisation?

Answer 1

Is a process by which countries and eonomies have become more interlinked

Question 2

What are the advantages of globalisation?

Answer 2

1. Economies of scale
2. Target to more customers
3. Spreading risk

Question 3

What are 3 disadvantages of globalisation?

Answer 3

1. Increased competition
2. Economic dependency= dependant on another country for their goods= no longer made in the uk

Question 4

What factors have helped globalisation?

Answer 4

1. Trade liberalisation= reduction in trade restrictions
2. Ease of transportation and improvement in transport
3. Internet, e-commerce

Question 5

Why do many companies want to be multinationals?

Answer 5

1. Economies of scale can be obtained as production increases
2. Enter new markets where less competition

Question 6

What are the benefits of multinationals?

Answer 6

1. Investment into local infrastructure
2. Employment equips local people with skills

Question 7

What are the disadvantages of multinationals?

Answer 7

1. Local businesses drive out of market
2. Child labour often used which means child misses out on education