Flashcards in External influences Deck (7)
Globalisation is ...
The process of growth in world markets through a process of integration where it is possible to trade in a global market on the same way as one would in a domestic market
What is international trade?
the exchange of goods, services and capital across the borders of different countries
Why is international trade beneficial to companies?
Why is competition useful?
-forces businesses to be efficient
-keep prices low for consumers
Barriers to entry
-high start up costs
-economies of scale from existing firms
Barriers to exit
- high redundancy costs
-can't sell factories
-can't break contacts with suppliers