1
Q
Forces driving globalisation
A
- cost factors
- market factors
- technology factors
- global business cycle
2
Q
Explain cost factors
A
Companies are looking for cheaper labour and manufactiring costs, so the outsource production to other countries
3
Q
Explain market factors
A
As domestic markets become saturated, so emerging markets offer new opportunities
4
Q
Technology Factors
A
The internet makes comparision of supply chains easly for manufactures
5
Q
Compny strategies in face of globalization
A
- import/export - lower risk, but also lower profits
- outsourcing - long time constactual agreement
- FDI (Foreign direct investment) - the highest risk, bat gives the most control
6
Q
Global business Factors
A
- recovery (=upswing)
- growth (=explosion / boom)
- recession (= contraction / downturn)
- depression (=slump)
7
Q
political strategies in face of globalization
A
- Being in favour of market forces and deregulation
- Being in favour of subsidies and protctionism
8
Q
A
