2.4 Globalisation

• What does globalization refer to in a business context?

  Interconnection across national borders
• Growing cultural exchange is a result of globalization.


  True
• Free trade agreements reduce trade barriers like tariffs and quotas
• What is one challenge posed by globalization for businesses?

  Logistical complexities
• What is one opportunity created by globalization for businesses?

  Accessing new markets
• Diversification allows businesses to reduce their risk by operating in multiple countries and regions.


  True
• Logistical complexities in globalization can result in higher transportation costs and delays.


  True
• Globalization refers to the process by which businesses become more interconnected globally
• What is one technological advancement driving globalization?

  Faster communication
• What is one challenge associated with sourcing inputs from lower-cost locations globally?

  Logistical complexities
• Match the globalization challenge with its description:

  Cultural Differences ↔️ Adapting to diverse norms

  Increased Competition ↔️ Facing foreign firms

  Logistical Complexities ↔️ Managing global supply chains
• Match the globalization challenge with its description:

  Cultural Differences ↔️ Adaptation to cultural norms

  Increased Competition ↔️ Reduced market share

  Logistical Complexities ↔️ Higher transportation costs
• Regulatory differences across countries require compliance costs and specialized legal expertise
• Effective supply chain management in globalization includes diversifying suppliers
• Match the globalized business with its industry:

  McDonald's ↔️ Fast Food

  Coca-Cola ↔️ Beverages

  Apple ↔️ Technology

  Unilever ↔️ Consumer Goods
• Greater international investment and capital flows
• Match the driver of globalization with its impact on businesses:

  Technological Advancements ↔️ Facilitates international expansion

  Free Trade Agreements ↔️ Lowers costs for importing

  Economic Growth ↔️ Creates new investment opportunities

  Cultural Exchange ↔️ Adapting marketing strategies
• Cultural exchange leads businesses to adapt their marketing strategies.


  True
• Businesses can achieve economies of scale by operating in multiple markets.


  True
• Businesses can achieve cost savings through larger-scale production and distribution, which is known as economies
• What is one challenge posed by globalization for businesses?

  Cultural differences
• What do businesses need legal expertise for when navigating regulatory differences across countries?

  Compliance costs
• Increased cross-border trade is a key feature of globalization.


  True
• Free trade agreements lower the costs for imports and exports.

  True
• How does political stability in a country affect foreign investment?

  Attracts foreign investment
• Increased competition is a major challenge for businesses in globalized markets.


  True
• Increased competition in globalization can lead to pressure on pricing for businesses


  True
• Strategic planning is essential for businesses to overcome globalization challenges


  True
• Why is regulatory compliance important in globalization?

  Navigating legal differences
• How does McDonald's adapt its menu to local tastes?

  Local menu variations
• Unilever tailors its products to meet local consumer needs in over 190 countries


  True
• What is one effect of globalization on technology?

  Faster spread of information
• Steps in the process of globalization driven by technological advancements:

  1️⃣ Faster communication

  2️⃣ Reduced transportation costs

  3️⃣ Increased international trade
• Match the opportunity created by globalization with its description:

  Accessing new markets ↔️ Expanding sales to new regions

  Economies of scale ↔️ Lowering costs through larger production

  Sourcing cheaper inputs ↔️ Reducing expenses from raw materials

  Diversification ↔️ Spreading risk across countries
• Businesses can reduce costs by sourcing cheaper inputs from lower-cost
• How can businesses reduce overall costs by sourcing inputs globally?

  Sourcing cheaper inputs
• Increased competition from both local and international businesses can lead to reduced market share
• Match the benefit of globalization with its description:

  Access to new markets ↔️ Expand sales and operations globally

  Economies of scale ↔️ Reduce costs through larger production
• Economic growth in emerging markets creates new investment opportunities
• Adapting to cultural differences is a significant challenge