business and globalisation

• The impact of globalisation on businesses:

  ● imports: competition from overseas, buying from overseas

  ● exports: selling to overseas markets

  ● changing business locations

  ● multinationals.
• imports


  Goods or services bought from overseas companies.
• multinational 


  A business with production facilities in more than one country.
• trade bloc


  A group of countries that have agreed to have free trade within external tariff walls.
• globalisation


  The increasing trend for countries to trade with each other and access goods and services worldwide.
• tariffs


  Taxes charged only on imports to make them more expensive and protect local producers.
• imports:

  • more competition from imports
  • closure or become better at what outcompete international rivals in the UK
  • buying from imports means that it allows UK businesses to :
  • The product may not be available in the UK
  • may be cheaper abroad
  • may be better quality if imported
• exports:

  • UK businesses find it easier to sell to foreign countries
  • result in fewer barriers to trade , cheaper international transport and easier communication links
  • Best UK companies are selling worldwide to billions of customers
• changing business locations:

  • moving products all around the world can be expensive and take long
  • successful UK manufacturers have placed factories all around the world to make selling easier.
  • manufacturing in other countries besides the UK is cheaper
• multinational:

  • increased power of multinationals, even when dealing with national governments.
  • Scope for multinationals to avoid paying tax in some countries.
  • The role played by multinationals in developing economies: encouraging local businesses and improving local transport and communication networks.
• tariffs:

  • They protect home producers by making imports artificially expensive and less attractive to consumers.
  • They increase the cost of living for consumers, leaving everybody worse off.
  • They prevent the growth of international trade/globalisation.
• What advantage do businesses in a trading bloc have when selling to other bloc countries?

  They can sell without import taxes
• How does being outside a trading bloc affect businesses?

  It makes it harder for them to compete and export due to tariffs and extra import costs
• What concern do UK exporters have regarding Brexit?

  They are worried about its impact on their EU sales
• How has increased globalization affected businesses?

  It has opened up foreign markets, allowing them to compete internationally
• How can businesses reach foreign customers in a globalized market?

  Through e-commerce, as websites can be accessed globally
• What are the 4Ps in the marketing mix that may need adjustment for international competition?

  • Product
  • Price
  • Promotion
  • Place
• Why might businesses need to adjust their products for different markets?

  To suit local climates, tastes, or fashions
• How can a product's reputation affect its pricing in different countries?

  It may allow businesses to price products differently based on local conditions
• Why must advertising be tailored when competing internationally?

  To fit local tastes and trends
• How do distribution channels differ by country?


  They are influenced by the availability of e-commerce and retail practices
• Why might selling through a website not be suitable in all markets?

  Because distribution channels and retail practices vary significantly
• Trading blocs: A group of countries agree to trade freely among themselves. Businesses in these countries can sell to consumers in the other trade bloc countries without import taxes, but will face taxes on products traded outside the bloc. This makes it harder for businesses outside the bloc to compete. Being outside a trading bloc can also make exporting to these countries more challenging due to tariffs and extra import costs. UK exporters are concerned about Brexit’s impact on their EU sales.
• How businesses compete internationally: Increased globalisation has opened up foreign markets to businesses, allowing them to compete internationally rather than only with domestic competitors. This can involve reaching foreign customers through e-commerce, as websites know no national boundaries and can be accessed globally. This allows sales to be made through the internet, enabling businesses to reach customers around the world.
• Changing the marketing mix: Competing internationally may require adjusting one or more of the 4Ps—Product, Price, Promotion, and Place—to meet different customer needs.

  • Product: May need changes for local climates, tastes, or fashions, adding to costs but attracting customers.
  • Price: Can vary based on reputation and local conditions.
  • Promotion: Must be adapted to local preferences.
  • Place: Distribution methods differ by country, with e-commerce being more viable in some regions than others.