Chapter 6: Globalisation

• What is globalisation?

  The process that enables product, financial and investment markets to operate across the globe.
• The aspects of globalisation

  -Increase trade in goods and services

  -Increase movement of labour

  -Increase movement in capital
• The changes made from globalisation

  -the deregulation of markets

  -political changes

  -removal of barriers to trade

  -improve communication systems
• What is global branding?

  The name of a product or service that is known and sold in all parts of the world by a particular company

  Eg. Coca-cola, McDonald's
• Multinational


  Businesses operating in a number of countries, whether extracting resources, manufacturing, retail or all of them

  Eg, Tesco, HSBC,Vodafone
• Benefits of being multinational

  -Provides employment and creates better living standards

  -Investment leads to infrastructure development

  -Pay taxes to government

  -Increase customer choice
• Limitations of being multinational

  -Can be accused for destroying local culture

  -May have a negative impact on the environment

  -They can cause an increase of competitions. Leading to an increase of unemployment and business to close
• Social benefits of multinational

  -Cheaper raw material

  -Higher quality goods

  -Job opportunities

  -Increase in living standard
• Social costs of multinational

  -Competition of investment

  -Pollution

  -Erosion of culture

  -The poor and vulnerable can be encouraged to buy non-beneficial products
• How to operate in a global marketplace?

  -Standardise your products

  -Choose your outsource

  -Staff may need to be mobile (willing to travel)

  -Be aware of cultural differences

  -Use the internet