Ch10: Globalisation + Technology

• A factor contributing to Globalisation - Business:

  • Developments in communications and technology mean that consumers worldwide see advertisements for new products, creating a worldwide demand
  • Businesses that have reached their full potential in their native country and don't see any future growth opportunity can start expanding globally. Ex) Kerry Co-op
  • The increase in free trade agreements around the world, along with the de-regulation of many markets, has opened opportunities for many firms. Ex) the Open Skies Agreement for flights worldwide
• A factor contributing to Globalisation - Technology:

  • Reduction in the cost of communication leads to instant contact over the internet and telephone. This can mean that work can be outsourced, making the business more cost-effective.
  • Development in communications technology, such as mobile phones and the internet, have improved the speed and sharing of information, which is vital for business activity
  • Advancements in satellite and telephone technology allows people to see television picture all over the world. This opens markets for international products and services
• A factor contributing to Globalisation - Travel:

  • Improvements in transport, such as train, truck, aeroplane, make it easier and faster to operate a global business
  • The reduction in the cost of air travel means that people on any budget can travel anywhere worldwide for business and holiday. This resulted in new markets being opened not possible before.
• Positive impacts of Globalisation:

  • Transnational companies (MNCs) setting up and locating in Ireland provide employment and a salary for Irish people that would be unemployed
  • As competition has increased, the consumer has a larger amount of choice and the prices of products have decreased. This makes goods and services more affordable
  • Globalisation allows Irish consumers to experience goods and services from around the world in their own country
• Negative impacts of Globalisation:

  • It can lead to a loss of culture, as the same goods and services flood the market in every country, making an 'international standard'
  • It can reduce the amount of entrepreneurs - entrepreneurial activity - in many countries, as they fell they are unable to compete against firms selling cheap products
  • From the transport involved with globalisation, more damage to the environment and pollution are caused