2.4 Globalisation

• Increased trade is a key aspect of globalisation.


  True
• Lowering trade barriers encourages globalization.


  True
• Free trade agreements have reduced trade barriers, contributing to globalization.

  True
• Businesses can reduce costs by sourcing labor from countries with lower wages.


  True
• Increased competition is a major challenge of globalisation for businesses, as they face competition from both local and international firms
• What allows multinational corporations to benefit from economies of scale and scope?

  Worldwide operations
• What is achieved when companies produce on a larger scale to reduce per-unit costs?

  Economies of scale
• Match the benefit of globalisation with its example:

  Access to New Markets ↔️ Starbucks establishing stores in China

  Access to Resources ↔️ Apple manufacturing iPhones in China

  Lower Costs ↔️ Zara sourcing fabrics from Asia

  Innovation ↔️ Google employing engineers from various countries
• Arrange the following strategies to manage globalisation in the correct order:

  1️⃣ Market Selection

  2️⃣ Localisation

  3️⃣ Strategic Alliances

  4️⃣ Operational Efficiency
• What strategy involves adapting products and marketing to meet local cultural preferences?

  Localization
• Cultural differences in user preferences can impact technology adoption globally


  True
• Cultural sensitivity involves respecting local values and adapting to them

  True
• Globalisation refers to the increasing integration of markets worldwide through increased trade, cultural exchange, and investment flows
• Technological advances in transportation, communication, and information technology have made it easier for businesses to operate globally
• Globalisation refers to the increasing integration of markets worldwide through expanded international trade, enhanced cultural exchange, and heightened investment flows
• Globalisation enables businesses to expand into new regions and cater to a broader customer base
• Arrange the following benefits of globalisation for businesses in order of their impact:

  1️⃣ Access to New Markets

  2️⃣ Access to Resources

  3️⃣ Lower Costs

  4️⃣ Economies of Scale

  5️⃣ Innovation
• Cultural exchange involves the sharing of traditions and values across countries.


  True
• Match the benefit of globalisation with its example:

  Access to New Markets ↔️ Starbucks expanding into China

  Access to Resources ↔️ Apple manufacturing in China

  Economies of Scale ↔️ Nike producing shoes in multiple countries
• Businesses can reduce costs by sourcing labor from countries with lower wages


  True
• Collaboration and knowledge sharing across borders can foster innovation in businesses


  True
• Businesses must adapt their strategies to address varying cultural norms and consumer preferences
• Strategic alliances with local companies share risk and combine expertise


  True
• Match the business sector with its challenge of globalisation:

  Manufacturing ↔️ Logistical complexities

  Retail ↔️ Intense competition

  Technology ↔️ Cybersecurity regulations

  Financial Services ↔️ Currency fluctuations
• Minimising pollution and resource depletion is part of the ethical consideration related to environmental impact
• Match the aspect of globalisation with its explanation:

  Cultural Exchange ↔️ Sharing of traditions, values, and ideas

  Investment Flows ↔️ Movement of capital between countries

  Integration of Markets ↔️ National markets merge globally
• Arrange the following factors driving globalisation in order of their impact on businesses:

  1️⃣ Technological Advances

  2️⃣ Reduction in Trade Barriers

  3️⃣ Increased Consumer Demand

  4️⃣ Emergence of Global Firms
• Match the driving factor of globalisation with its description:

  Technological Advances ↔️ Improvements in transportation and communication

  Reduction in Trade Barriers ↔️ Lowering tariffs and quotas

  Increased Consumer Demand ↔️ Consumers seeking global products
• Cultural differences require businesses to adapt their strategies in new markets.

  True
• Technological advances have made it easier for businesses to operate globally through improvements in transportation, communication, and information technology
• Globalisation enables businesses to expand into new regions and cater to a broader customer base
• Globalisation provides opportunities to reduce labor, production, and operational costs
• What is a major challenge of globalisation for businesses due to increased competition?

  Greater competition
• Expanding into multiple international markets reduces reliance on any single market
• What is a key ethical consideration related to labor practices in globalisation?

  Fair wages