global context

Question 1

what is the definition of globalisation?

Answer 1

the process of growth into different wold markets through the process of integration, where it is possible to trade in a global market in the same way you would in a domestic market.

Question 2

what are the drivers of change for globalisation?

Answer 2

• containerisation = refers to transportation of goods across the world and the ability to transport mass amounts.
• telecommunication = the ability to communicate with people across the world through e-commerce and email / Skype
• the ability to borrow money across the world makes investment easier
• growth of multi-nationals such as MacDonalds and Microsoft.
• trading barriers between countries have been reduced

Question 3

what are the benefits to multi-nationals and other businesses of globalisation?

Answer 3

• benefits of EOS
• attracting new customers from different areas in the world
• attracting specialist labour
• greater opportunities
• likely to make a higher profit
• more established branding -= brand loyalty.

Question 4

how may globalisation have a negative effect on the wrest of the world?

Answer 4

developing countries may suffer from

• smaller local businesses being pushed out due to multi-nationals taking all the customers
• changing the culture of the local area may be going against their norms and values
• increased use of sweat shops and badly treated workforce who get little pay and working in poor conditions due to a lack of clear legislation.

Question 5

how might globalisation be beneficial ?

Answer 5

• bring more variety of choice
• provide a source of employment opportunities
• bring more tourism which may benefit developing countries economy
• news spreads fast about natural disasters on a large world wide scale
• develops infrastructure
• allows for emerging markets

Question 6

what is a threat to both developed and developing countries of globalisation?

Answer 6

• with developing countries such as china and India becoming more sophisticated and progressing globally in terms of business,
• this could cause globalisation to threaten all businesses as coming up with other ways to remain competitive such as targeting a niche audience not enough to be unaffected by huge multi-nationals.