globalisation

Question 1

what is globalisation?

Answer 1

process of closer integration of world’s markets. making countries more dependent on one another

Question 2

what are the key characteristics of globalisation/global markets?

Answer 2

goods and services traded throughout world
people live and work in country of choice
interdependence between countries
free capital flows between countries
sharing of tech and intellectual property

Question 3

what are the characteristics of developing markets?

Answer 3

increasing productive capacity
movement away from primary sector industries
increasing quality of life
rapid industrialisation
movement towards free market

Question 4

why are emerging markets important?

Answer 4

drive growth in global economy

Question 5

what are some key developing markets?

Answer 5

brazil, chille, china, colombia, egypt, greece, hungary, india

Question 6

what are reasons for globalisation?

Answer 6

deregulation of markets
internet
improved communication
reduced transport costs
consumer tastes

Question 7

what is market deregulation?

Answer 7

removal of government legislation and laws in a specific market

Question 8

what does deregulation help do?

Answer 8

removes barrier to competition
attracts new firms
drives down prices

Question 9

what is a disadvantage of market deregulation?

Answer 9

removal of bureaucracy and ‘red tape’
slows down business activity
adds to their costs

Question 10

how has the internet allowed for globalisation?

Answer 10

enabled companies to speed up productivity
sped up info access
faster electronic payments
lower labour costs

Question 11

what has the internet changed how people work?

Answer 11

enabled increased productivity
sped up access to info
faster electronic payments 
lowered labour costs
establishment of MNC

Question 12

what is containerisation?

Answer 12

system of standardised transport that uses a common size of steel container to transport goods

Question 13

what do large cargo ships allow for?

Answer 13

cost of transporting goods between countries has decreased, allowing for quick and easy travel

Question 14

what are strategies for global growth?

Answer 14

ansoff matrix
diversification
market/product development

Question 15

what are pros and cons of globalisation?

Answer 15

\+economies of scale
\+new markets and customers
\+oppurtunities for business growth
-loss of jobs in developed economies
-fall in real wages
-exploitation of developing countries

Question 16

why do MNCs exist?

Answer 16

create competitive advantage
economies of scale
cheaper raw materials
government subsidies and tax incentives

Question 17

why do business’ become MNCs?

Answer 17

increased market share
economies of scale
avoidance of trade barriers

Question 18

how do MNCs benefit host nations?

Answer 18

increased levels of investment
more exports and fewer imports
transfer of capital
local companies can benefit from research and development

Question 19

how do MNCs disadvantage host nations?

Answer 19

destruction of local competition
growth of MNC monopoly power which limits consumer choice
exploitation of labour
tech may be outdated

Question 20

what is glocalaisation?

Answer 20

involves development and sale of products and services intended for the global market, adapted to local tastes, customs and traditions (think globally, act locally)

Question 21

what are the key benefits of glocalisation?

Answer 21

global recognition of brand

increased sales due to adapted product

Question 22

what are the key drawbacks of glocalisation?

Answer 22

constant need for market research
expense of adapting product range
limits opportunities for economies of scale

Question 23

what are the benefits of UK firms to global markets?

Answer 23

opens up new markets outside of EU
GB as bran provides natural advantage
British export firms are more efficient than non-exporters

Question 24

what are the drawbacks of UK firms to global markets?

Answer 24

job losses as manufacturing moves overseas
lower wages, due to costs cut to remain internationally competitive
British firms unable to compete against massive global companies