Globalisation

Question 1

Define globalisation.

Answer 1

The process of the world’s economies, political systems and cultures becoming more increasingly connected to each other.

Question 2

List the dimensions of globalisation.

Answer 2

Flows of capital, labour, products, services, information

(Economic, social, cultural, political and environmental)

Question 3

Evaluate why globalisation is good.

Answer 3

Businesses have a competitive advantage by being able to source raw materials.
Taking advantages of lower labour costs in developing countries and technical experience in developed countries.
Services branch internationally = globally connected jobs.
Decreasing cost of manufacturing = lower prices for consumers.
Increased GDP.

Question 4

Evaluate why globalisation is bad.

Answer 4

Low pay snd lose jobs to suppliers in less expensive labor markets (Shein etc)… children don’t go to school… income disparity and inequality between the more and less educated members of society.
Illegal migration
Climate change

Question 5

When did an unprecedented amount of globalisation occur?

Answer 5

1990s teach revolution has led to global-scale thinking and a worldwide economy.

Question 6

What 7 factors have led to globalisation?

Answer 6

Development of ICT
Improvements in transport
Movement of people around the world has increased (tourism, specialised workers, migration of unskilled workers and refugees from conflict)
Services (banking, marketing, advertising, retailing, sport)
Deregulation of world financial markets
World Trade Organisation
Growth of TNCs, economies of scale and Just In Time Production (management systems)

Question 7

Define economies of scale.

Answer 7

When a business increases its output, which causes the average cost per unit of production to fall…Going big to save money!

Question 8

Define Just In Time Production.

Answer 8

Making and shipping products as needed.

Question 9

Define global shift and its impact.

Answer 9

The filtering down of the manufacturing industry from developed countries to lower wage economies.
It improves economies of poorer countries BUT there is a job loss in the manufacturing sector of richer countries.

Question 10

Define global marketing.

Answer 10

The process of promoting and selling products or services that has become global as products are now served all over the world (rather than just in the producing country)

Question 11

How has global marketing benefited TNCs?

Answer 11

It is a marketing strategy that is cheaper and benefits from economies of scale and provides global brand awareness.

Question 12

Define glocalisation.

Answer 12

Companies tweak their product to suit the local market they are selling to e.g. McDonalds have burritos in Mexico.