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Flashcards in The Global Context Deck (11)
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1
Q

What is meant by Globalisation?

A

Is the process by which the countries of the world are trading in each other’s markets.

2
Q

How has the internet facilitated globalisation?

A
  • Companies can improve their competitive edge

- increases productivity

3
Q

Three other factors that have helped to facilitate globalisation?

A
  • Improvements in Transportation
  • Economies of Scale
  • Less legal constraints
4
Q

Define a Multinational.

A

A company operating in several countries

5
Q

Identify three ways multinationals benefit from globalisation.

A
  • Free trade
  • Free movement of labour
  • Economies of Scale
6
Q

Identify three ways that LEDC’s benefit from Globalisation?

A
  • More people are earning a wage, less unemployment
  • Training means people develop new skills
  • improves infrastructure
7
Q

Identify and explain one drawback of globalisation on LEDC’s.

A

Standardisation - loss of economic and cultural diversity as global multinationals dominate domestic markets

8
Q

Define Global Stratergy.

A

is an organization’s strategic guide to globalization.

9
Q

Explain why low wages in LEDCs are an issue for job availability in MEDCs.

A

I causes less people to be employed in the MEDC’s because labour costs in LEDC’s are lower so more people are unemployed in MEDC’s

10
Q

State what is meant by ‘global brand’

A

Are brands that are recognized throughout much of the world.

11
Q

Identify two opportunities and two threats posed by globalisation for businesses.

A

OPPERTUNITIES
- Businesses can benefit from economies of scale
- Freer movement of labour has meant there is no labour shortages
THREATS
- Small businesses are forced out of markets because they cannot compete with the low prices
- Rising Inequality