Globalisation

Question 1

Define globalisation

(Anything about globalisation you write this)

Answer 1

Globalisation refers to the growing economic integration of the world

It involves the flow of workers, materials, components, goods and services, equity across international borders

Question 2

What are factors that drive globalisation 4

Answer 2

Growth of multinationals seeking new markets and cheaper materials, premises and labour costs

• advances in ICT which enables e commerce and global sourcing of materials, components and workers- opens up new markets
• a reduction in international trade barriers such as tariffs which is helped by the creation of free trade areas such as EU and ASEAN
• desire for increased trade and investments between countries which helps improve global relations and integration

Question 3

whats the benefits of globalisation on Uk businesses 4

Answer 3

• they source materials , energy and componenets cheaper abroad than producing them or buying them domestically

-a price waterhouse report condluded that UK building firms could save 30% by getting their materials etc from countries with low manufacturing costs eg china

-E-commerce UK businesses will be able to target a much bigger market , increasing customer base sales and profits due to being on the global market

• by selling on the global market they will have increased sales and outputs, meaning they can use economies of scale when purchasing raw matrials which reduces unit costs and make them more competitive

Question 4

define the benfits of globalisaton on UK businesses 4

Answer 4

source materials cheaper

price warehouse report means businesses can save 30%

Question 5

whats the drawbacks of globalisation on UK businesses3

Answer 5

• may become too dependent on supply chains- external fsctors such as pandemics or wars makes it difficult to obtain supplies of materials and components

-shortages and supply chain problems can cause production delays and the price of foreign input increases due to sustainability- means for uk buisnesses sourcing globally will have to increase price which will reduce profit margins

• more supply chain probelsms due to ukraine war- caused oil wheat and platinum prices to increase for uk organisations and global suppliers and competitors
• talk about the normal multinationals if just asks about businesses

Question 6

Costs and benefits to businesses

Answer 6

-

Question 7

describe the factors that drive globalisation

Answer 7

the growth of multinationals seeking new markets, cheaper materials and labour costs

advances in ICT which enables e-commerce and global sourcing of materials components and workers

reduction of international trade barriers such as tarriffs which is helped by the creation of free trade areas such as EU and ASEAN

the desire for increased trade and investment between countries which helps imrove global relations and integration