3.2.4 - Globalisation

• What are tariffs?

  Taxes on imported goods
• What is a multinational company (MNC)?

  Produces goods in more than one country
• What does globalization facilitate for businesses?

  Free movement of goods, services, and capital
• What are the different aspects of globalization?

  • Exchange rates
  • Competing internationally
  • Imports and exports
• What are the advantages of globalization?

  • Increased markets
  • Cheaper labor and raw materials
  • Internal specialization
  • Efficiency due to competition
  • Transfer of knowledge, skills, and technology
• What is international specialization?

  Focus on resources in areas of expertise
• How does international competition affect businesses?

  Leads to cheaper costs for consumers
• Consequences of globalization on industries?

  • power of multinational brands
  • affects of events in other countries
• Why is the internet important for businesses?

  It allows expansion and access to customers
• How can a small business use e-commerce?

  By setting up a website to sell products
• What are the advantages of e-commerce for businesses?

  • Open 24/7
  • Cheaper to operate than physical stores
  • Access to a wide range of customers
  • Easy to sell overseas
  • Cost-effective promotional methods
• What elements make up the marketing mix?

  • Product
  • Price
  • Place
  • Promotion
• Why must businesses adapt their marketing mix internationally?

  Different countries have varying demands and preferences
• What factors affect the product element of the marketing mix?

  • Styles and trends
  • Cultural beliefs
  • Dietary restrictions
  • Infrastructure differences
• What factors affect the place element of the marketing mix?

  • Internet access
  • Purchasing preferences
  • Distribution links
• What factors affect the promotion element of the marketing mix?

  • Cultural differences
  • Language barriers
  • Social differences
• What is an exchange rate?

  Amount of one currency bought with another
• What does SPICED indicate for businesses?

  Cheaper imports but lower export profits
• What does WPIDEC indicate for businesses?

  More expensive imports but higher export sales
• What are barriers to international trade?

  • Tariffs
  • Trading blocs
• What is a tariff?

  Tax on imported goods and services
• What is a trading bloc?

  Group of countries working together for trade
• What are the responsibilities of multinational companies (MNCs)?

  • Operate in multiple countries
  • Increase brand awareness
  • Potential for more sales and profits
  • Increased responsibility and risk
• What is the ultimate goal of a growing business?

  To compete abroad
• What is glocalization?

  Adapting products for local markets
• What does importing refer to?

  Purchasing goods from overseas
• Why do companies import products?

  Due to climate or resource availability
• What does exporting refer to?

  Selling products to other countries
• What is one of the UK's biggest exports?

  Vehicles