globalisation

Question 1

What is globalisation?

Answer 1

• Globalisation is the process that enables product, financial, and investment markets to operate across the globe through increased trade, movement of labour, and financial capital.

Question 2

What are the key aspects of globalisation?

Answer 2

• Increased trade in goods and services
• Increased movement of labour between countries
• Increased movement of financial capital

Question 3

What are global markets?

Answer 3

• Markets where goods and services are traded internationally
• often beyond local or national boundaries, involving multiple countries.

Question 4

What are developing markets?

Answer 4

• Economies that are transitioning from low-income, less industrialised countries into modern industrial economies with increasing GDP and expanding consumer bases.

Question 5

what are the key factors contributing to globalisation.

Answer 5

• the deregulation of markets
• political changes
• the removal of barriers to trade
• the lowering of transportation costs
• improved communication systems.

Question 6

How has the internet contributed to globalisation?

Answer 6

• It allows firms to market and sell internationally with minimal cost
• reducing barriers to entry and enabling even small businesses to reach global markets.

Question 7

How has liberalisation of trade impacted globalisation?

Answer 7

• It reduces tariffs and quotas, allowing for freer flow of goods, services, and capital across borders, promoting competition and international trade.

Question 8

What are the main opportunities created by globalisation for businesses?

Answer 8

• Access to new markets for growth
• Economies of scale through higher production
• Lower production costs in developing countries

Question 9

How does globalisation affect employees in developed countries?

Answer 9

• It can lead to job losses and lower real wages as companies relocate operations to lower-cost economies.

Question 10

What are some negative effects of globalisation on the environment?

Answer 10

• Increased transportation contributes to global warming
• excessive land development can lead to deforestation and pollution.

Question 11

What is global branding?

Answer 11

• A strategy where a business uses the same brand, logo, and product design across all markets, benefiting from recognition and marketing economies of scale.

Question 12

What are the disadvantages of global branding?

Answer 12

• It may not meet local market needs, leading to loss of sales to competitors who better adapt to local preferences.

Question 13

What is ‘glocalisation’?

Answer 13

• Adapting global products or services to meet local tastes, cultures, or regulations while maintaining global brand identity.

Question 14

What are other strategies for achieving global growth?

Answer 14

• External growth (e.g., mergers, takeovers)
• Choice of appropriate target markets
• Outsourcing and relocating production
• Strategic partnerships

Question 15

What are the benefits of standardisation in global strategy?

Answer 15

• Cost savings
• consistent brand image
• streamlined operations
• easier quality control.

Question 16

What are the challenges of external growth in global markets?

Answer 16

• Cultural Differences: Different languages, working styles, or customer habits
• Legal Barriers: Different countries have different laws
• Integration Problems: difficult to combine systems, staff, and ways of working.

Question 17

What are the benefits for UK businesses operating globally?

Answer 17

• Access to new markets
• increased revenue
• diversification of risk
• economies of scale
• ability to source cheaper raw materials.

Question 18

What are the challenges for UK businesses in global markets?

Answer 18

• Increased competition
• need to adapt to local cultures
• logistical and legal complexities
• potential damage to domestic employment.

Question 19

What is a multinational company (MNC)?

Answer 19

• A business that operates in multiple countries, either through manufacturing, services, or retailing.

Question 20

Why do businesses become multinationals?

Answer 20

• To access global markets
• reduce costs
• benefit from economies of scale
• diversify risk
• enhance brand recognition.

Question 21

What are the advantages of MNCs for host countries?

Answer 21

• Job creation
• infrastructure development
• tax contributions
• introduction of new technologies
• access to cheaper goods.

Question 22

What are the disadvantages of MNCs for host countries?

Answer 22

• Threat to local businesses
• cultural erosion
• exploitation of labour
• environmental damage
• potential tax avoidance.

Question 23

what are the social benefits of globalisation.

Answer 23

• Higher living standards
• Job opportunities
• Access to technology and quality goods

Question 24

what are the social costs of globalisation.

Answer 24

• Competition for investment has eroded the will of some governments to protect the environment and workers
• erosion of cultures.
• inequality divide
• Pollution

Question 25

To what extent does globalisation benefit UK businesses and consumers?

Answer 25

- Benefits: access to new markets, cheaper inputs, lower prices, more choice. - Drawbacks: job losses, wage pressures, competition. Impact varies by industry and policy.

Question 26

Who are the main winners of globalisation

Answer 26

- consumers have greater choice - developing countries increase their wealth - businesses who trade internationally

Question 27

who are the main losers of globalisation

Answer 27

- unskilled workers in western economies - the environment - employees in developing countries being exploited - businesses who have been outcompeted by oversees countries