globalisation

• What is globalization?

  Process of countries becoming interconnected
• Why do countries become more interconnected?

  They open up to trade and labor movement
• Which countries exemplify the trend of globalization?

  China, Poland, and Estonia
• What is a result of globalization for businesses?

  Businesses buy and sell internationally
• How do businesses adapt to international markets?

  By adjusting their marketing mix
• What are the four P's in marketing mix?

  Product, Price, Place, Promotion
• What is a pro of globalization regarding target markets?

  It allows easier selling to larger markets
• How does globalization affect research and development investment?

  It incentivizes increased investment in R&D
• What advantage does globalization provide in terms of raw materials?

  Access to cheaper raw materials and components
• How does cheaper raw material access affect production costs?

  It lowers production costs and increases profits
• What is a benefit of access to cheaper labor?

  It reduces production costs for businesses
• How might a UK business benefit from cheaper labor abroad?

  By moving operations to lower wage countries
• What does liberalization allow businesses to do?

  Change locations for better resources
• What is a con of globalization for UK businesses?

  Increased competition from abroad
• How do exchange rates impact businesses in a globalized market?

  They affect price competitiveness and sales
• What is a challenge of higher wage rates in the UK?

  Higher production costs compared to other countries
• What ethical concern arises from outsourcing labor?

  Risk of becoming unethical in practices
• How does business size affect globalization benefits?

  Large businesses exploit globalization more easily
• What defines a multinational corporation?

  Owns at least 25% revenue outside home country
• What are the pros and cons of globalization for businesses?

  Pros:

  • Easier to sell products abroad
  • Access to cheaper raw materials
  • Access to cheaper labor
  • Ability to change locations

  
  

  Cons:

  • Increased competition from abroad
  • Impact of exchange rates
  • Higher production costs in the UK
  • Risk of unethical practices