Global market

Question 1

Global marketplace - why important and how done

Answer 1

competitive companies sell worldwide but products may need slight customisation to reach/not be offensive to different markets so research is done locally

Question 2

Offshore manufacturing definition

Answer 2

companies set up new factories in developing countries and take advantage of local manufacturing expertise. New buildings are needed in the developing countries for workers/factories. Can be low skilled work or ‘knowledge work’ and manufacturing

Question 3

Offshore manufacturing - Why

Answer 3

Cost in the main reason, but companies can start expanding into these developing countries and high speed data allows for speedy and accurate transfer

Question 4

Offshore manufacturing - disadvantages

Answer 4

developing countries workers could be exploited in sweatshops. Brands don’t want to be associated with poor wages in developing countries. Local workers lose traditional skills and become reliant on unskilled labour.