TOPIC 6

Question 1

What is an example of a bank using CSR?

Answer 1

The Santander foundation makes donations to small charities in the UK that help disadvantaged people

Question 2

What is globalisation

Answer 2

Increasing international network, singular economies are increasingly linking

Businesses develop international influence and start operating on a national scale

Question 3

What are the effects of globalisation?

Answer 3

• UK providers face more competition from overseas providers as they can offer lower costs. The increased competition would mean that customers can enjoy better services and lower prices
• UK providers may decide to expand overseas and they would need to decide on how much of their resources they keep in the UK as a result customer could see a reduction in quality.

Question 4

What is outsourcing ?

Answer 4

When one business pays another to carry out jobs for them

Question 5

What is offshoring ?

Answer 5

Moving some of a businesses operations to overseas locations

Question 6

How are financial providers affected by the global economy?

Answer 6

• countries trade with each other and many British jobs depend on the demand abroad, the financial industry is a major export industry for the UK
• as a result of globalisation financial providers may find themselves in competition with with businesses based overseas. This means that there strategies will have to take into account what is happening abroad

Question 7

How do exchange rates impact the economy ?

Answer 7

6.