Globalisation

• Globalisation is the trend for markets to become worldwide in scope.
• A multinational company (MNC) produces goods and services in more than 1 country.
• International trade is the selling of goods and services across national borders
• Exports = Produced in a country and sold abroad.

  Money comes in
• Imports = Produced abroard and bought to our country.

  Money goes out
• Globalisation

  Pros:

  • Rapid growth
  • Cheaper resources
  • Inward investment

  Cons:

  • Fierce competition
  • New competitors
  • Threat of takeover
• Inward investment occurs when governments, businesses and individuals invest capital into another country eg. by building factories
• An exchange rate is the price of one currency in terms of another