Globalisation

• Globalisation


  Where businesses operate internationally and gain alot of influence or power. Globalisation changes the way businesses operate and creates considerable opportunities and threats
• Impact of globalisation

  • Imports - allows to important at a lower price than cost of producing. increases competition from foreign businesses.
  • Exports - opens new markets, potential to grow.
  • Location - relocate to other countries, lower labour costs, closer to raw materials, closer to target market
• Multinationals 


  A large company with facilities and markets around the world. Powerful businesses that create jobs and growth.
• Benefits of Globalisation

  • New market opportunities
  • Access to technology and resources
• Drawbacks of Globalisation

  • Threat of foreign competition
• Trade Barriers

  • Tariffs- taxes on imports
  • Quotas - physical limits on imports
  • Non tariff barriers - quality or safety standards
  • Trade blocs - promoting trade between group of small countries
  • Subsidies - money given to help domestic producers
• Reasons for trade barriers

  • Protecting jobs in domestic industries
  • Protecting emerging industries
  • Preventing the dumping of cheap good and entry of desirable
  • Raising revenue from tariffs
• Trade Blocs


  Is created when the governments of different countries agree to act together to promote trade among themselves.
• What does e-commerce enable businesses to do?

  • access international markets without needing to distribute to foreign retailers
  • can trade 24 hours a day
  • promote through social media
• Glocalisation 


  Changing products to adapt to other countries cultural differences, tastes and legal requirements.
• MNC

  multinational company. A business that has operations in more than one country
• Types of Imports

  • goods we cant grow or produce
  • good that require alot of labour
  • goods made but consumer prefers foreign produce
• How to export successfully

  • keep costs low to be competitive
  • produce original, well designed and well made items
  • deliver on time and provide service and post sales service
• how to compete internationally

  • use internet and e-commerce
  • changing the marketing mix