What does globalization describe?
How trade and technology have made the world a more connected and interdependant place.
FTA
and what does it do?
Free Trade Agreement.
Removes reducing protectionist measures such as tariffs, quotas and administrative restrictions
How can firms access international markets
Exporting goods and services.
Franchising
Joint ventures
Licensing
Direct investment in subsidiaries
Opportunities that come with international expansion.
- Access to new markets
-Greater brand awareness and brand recognition
-Opportunities to enjoy furthereconomies of scaleby
operating on a larger scale
-Increased sales and profits.
Threats of international expansion
-Currency fluctuations
-Unsustainable investments
-Culture clashes
-Language barriers
-Risks associated with entering an existing market
-Low market share
high competition
-Higher marketing costs
-Harder to manage
-Legal regulations
-Supply chain delays
