What is meant by Globalisation?
Is the process by which the countries of the world are trading in each other’s markets.
How has the internet facilitated globalisation?
- Companies can improve their competitive edge
- increases productivity
Three other factors that have helped to facilitate globalisation?
- Improvements in Transportation
- Economies of Scale
- Less legal constraints
Define a Multinational.
A company operating in several countries
Identify three ways multinationals benefit from globalisation.
- Free trade
- Free movement of labour
- Economies of Scale
Identify three ways that LEDC’s benefit from Globalisation?
- More people are earning a wage, less unemployment
- Training means people develop new skills
- improves infrastructure
Identify and explain one drawback of globalisation on LEDC’s.
Standardisation - loss of economic and cultural diversity as global multinationals dominate domestic markets
Define Global Stratergy.
is an organization’s strategic guide to globalization.
Explain why low wages in LEDCs are an issue for job availability in MEDCs.
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
State what is meant by ‘global brand’
Are brands that are recognized throughout much of the world.
Identify two opportunities and two threats posed by globalisation for businesses.
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