Define globalisation
It is the process of international intergration arising from the interchange of world views, products ideas and other aspects of culture
What are the features of globalisation
Migration
Closer intergration of different countries due to technology and transport
International trade-exports/imports
FDI
MNC- multinational corporation/TNC-transnational corporation
What are the factors which contribute to increased globalisation
Reduced trade barriers e.g. tariffs,quotas
Political change
Reduced costs of transport
Global companies
FDI
Migration
Global labour force
Structural change
What is trade liberalisation
The process by which international trade is made easier through a relaxation of the rules which govern it h
Why have governments taken an interest in imports
Possibly to restrict the availability of items seen as harmful or dangerous
They might wish to stop imports which will compete with state monopolies with political influence
Placing an import tax(tariff) was a significant source of income
Benefits of reduction of trade barriers
Makes markets more competitive
Creates opportunity for business
Stimulates economic growth
Consumers ultimately benefit because liberalised trade can help to lower prices and broaden the range of quality goods and services available
Companies can benefit
What is political change
Politcs can now happens on a global scale with regular meetings, summits, trading blocs and WTO
What is the impact of political change on a business
Less protection
Open trade
The planet is now one market
How has reduction cost of trade and communication led to globalisation
Communication e.g. mobile phone and internet- information and ideas can travel quickly
Transport has become much cheap and quicker e.g. UK citizens can go on holiday. People from other countries can travel to the uk and seek better jobs
Businesses can shi
What is a multinational corporation
A company that has facilities in multiple countries
How has increased significance led to globalisation
MNC having a presence in different countries stimulates demand, the economy can help redistribute wealth
Gradual lowering of trance barriers has allowed the expansion of the global economy
How has FDI led to globalisation
Businesses outside of a trading bloc will invest in a business or set up production inside the trading bloc to get around tariffs e.g. Toyota manufacturing in the Uk
FDI enables you to distribute your goods in another country
Increased interconnectivenss-
How has migration led to globalisation
As people move around the world they bring with them their own cultural tastes and rituals and religions etc. Which 'spring up' in the country they settle in e.g. food/restaurants/supermarkets
Cheap labour helps to drive down costs e.g. in the UK
How has the growth of global labour force led to gloabalisation
Growing population, more women working
Therefore increased supply of labour drives down costs
Driving demand as people's income rise
How has structural change led to globalisation
Post industrialised nations gradually move from secondary to tertiary sectors therefore services are easily exported e.g. retail, tourism, finance
Globalisation has increased the demand for goods and services significantly more than ever before
...
Define world trade organisation
An organisations that encourages trade between nations
Identify the importance of globalisation for businesses
1. Can help reduce costs as they have access to cheaper resources in countries which specialise e.g. labour/goods and services
2. Gain access to new/emerging/growing markets helps spread risk so they are not just dependent on one market
3.economies of sca
Drawbacks of globalisation for businesses
1. Culture clashes-can cause difficulties
2. Increased competition=downward pressure on prices impacting market share
+ also pressure to constantly improve and innovate which can be expensive
3. Inequalities between rich and poor in developed countries be
Pros of globalisation
Creates jobs spreading wealth
Drives down costs-reducing price
Increased competition-increased consumer choice
Cheaper resources- reduces/aids competitiveness
Helps businesses to spread risk and diversity into new markets
Access to new markets , growth op
How globalisation can benefit people living in a country such as China
Increased job opportunities-increased wealth
Increase demand for their goods and services-driving increased output- increased GDP
Access to more goods and service via internet because of improvements in communication and transport
in an exam generic argument AGAINST globalisation
there will be increased competition from domestic products as well as businesses from all over the world this means that sales may not be so high which will not allow them to expand and grow by that much
increased comp. may also mean they have to lower pr
Define globalisation
It is the process of international intergration arising from the interchange of world views, products ideas and other aspects of culture
What are the features of globalisation
Migration
Closer intergration of different countries due to technology and transport
International trade-exports/imports
FDI
MNC- multinational corporation/TNC-transnational corporation
What are the factors which contribute to increased globalisation
Reduced trade barriers e.g. tariffs,quotas
Political change
Reduced costs of transport
Global companies
FDI
Migration
Global labour force
Structural change
What is trade liberalisation
The process by which international trade is made easier through a relaxation of the rules which govern it h
Why have governments taken an interest in imports
Possibly to restrict the availability of items seen as harmful or dangerous
They might wish to stop imports which will compete with state monopolies with political influence
Placing an import tax(tariff) was a significant source of income
Benefits of reduction of trade barriers
Makes markets more competitive
Creates opportunity for business
Stimulates economic growth
Consumers ultimately benefit because liberalised trade can help to lower prices and broaden the range of quality goods and services available
Companies can benefit
What is political change
Politcs can now happens on a global scale with regular meetings, summits, trading blocs and WTO
What is the impact of political change on a business
Less protection
Open trade
The planet is now one market
How has reduction cost of trade and communication led to globalisation
Communication e.g. mobile phone and internet- information and ideas can travel quickly
Transport has become much cheap and quicker e.g. UK citizens can go on holiday. People from other countries can travel to the uk and seek better jobs
Businesses can shi
What is a multinational corporation
A company that has facilities in multiple countries
How has increased significance led to globalisation
MNC having a presence in different countries stimulates demand, the economy can help redistribute wealth
Gradual lowering of trance barriers has allowed the expansion of the global economy
How has FDI led to globalisation
Businesses outside of a trading bloc will invest in a business or set up production inside the trading bloc to get around tariffs e.g. Toyota manufacturing in the Uk
FDI enables you to distribute your goods in another country
Increased interconnectivenss-
How has migration led to globalisation
As people move around the world they bring with them their own cultural tastes and rituals and religions etc. Which 'spring up' in the country they settle in e.g. food/restaurants/supermarkets
Cheap labour helps to drive down costs e.g. in the UK
How has the growth of global labour force led to gloabalisation
Growing population, more women working
Therefore increased supply of labour drives down costs
Driving demand as people's income rise
How has structural change led to globalisation
Post industrialised nations gradually move from secondary to tertiary sectors therefore services are easily exported e.g. retail, tourism, finance
Globalisation has increased the demand for goods and services significantly more than ever before
...
Define world trade organisation
An organisations that encourages trade between nations
Identify the importance of globalisation for businesses
1. Can help reduce costs as they have access to cheaper resources in countries which specialise e.g. labour/goods and services
2. Gain access to new/emerging/growing markets helps spread risk so they are not just dependent on one market
3.economies of sca
Drawbacks of globalisation for businesses
1. Culture clashes-can cause difficulties
2. Increased competition=downward pressure on prices impacting market share
+ also pressure to constantly improve and innovate which can be expensive
3. Inequalities between rich and poor in developed countries be
Pros of globalisation
Creates jobs spreading wealth
Drives down costs-reducing price
Increased competition-increased consumer choice
Cheaper resources- reduces/aids competitiveness
Helps businesses to spread risk and diversity into new markets
Access to new markets , growth op
How globalisation can benefit people living in a country such as China
Increased job opportunities-increased wealth
Increase demand for their goods and services-driving increased output- increased GDP
Access to more goods and service via internet because of improvements in communication and transport
in an exam generic argument AGAINST globalisation
there will be increased competition from domestic products as well as businesses from all over the world this means that sales may not be so high which will not allow them to expand and grow by that much
increased comp. may also mean they have to lower pr