| What is Globalisation? | -The Free Movement of Goods, People, Services, Capital [Money] and more. This allows Businesses to sell Anywhere in the World |
| How has the World Globalised? | -The World is starting to become 1 Market
-Technology, Economic Development and Travel Improvements has Enabled Businesses to have a Viable Approach to Sell Anywhere |
| What are the Advantages of Globalisation? | -More Markets
-Cheaper Labour - Cheaper Raw Materials
-International Specialisation
-More Efficient - as more Competition
-Transfer of Knowledge and Skills, and Technology |
| What are the Disadvantages of Globalisation? | -International Competitors may have Cheaper Costs [More Competitive]
-Power of MNC's
-Whole Industry may Close
-UK has seen a Transfer from Manufacturing Sector --> Tertiary Sector [Goods --> Services]
-Events in other Countries will Effect you! [Russia x Ukraine, Burma] |
| Why would International Trade be Relevant to the United Kingdom? | -28% of Goods and Services we make are Exports [Sold abroad] but 30% of what we Purchase is Imported [From elsewhere] |
| What are Imports? | -Goods and Services that are Brought into One Country from another |
| What Impacts can Imports Create? | -Competition in UK Businesses Increase
-Increase in Consumer Choice - leads to more Competition |
| What are Exports? | -Goods and Services made in 1 Country, and are Sold into Another |
| Why may a Business want to Change Location? | -Enjoy Lower Manufacturing Costs
-Find more Skilled and Quality Supply
-Exploit Existing Capacity Oversees
-Exploit Free Trade Areas and Avoid Protectionism
-Easier to Target International Markets |
| What is an Multinational Company? [MNC] | -MNC's have Operations [Factories and Shops] in more than 1 Country |
| Advantages for being an Multinational Company? | -Operating Closing to the Target Market - Lowers Transportation Costs and has Better Market Information
-Lower Costs of Production - More Benefits to Operate Cheaply to provide Local Demand and also to Supply Demand in Host Country
-Avoid Protectionism - Producing in a Host Country leads to Restrictions on Imports being Avoided [Protectionism just means to Protect Domestic Industry's from Foreign Industry's] |
| How may a Business Sell Overseas? | -Exporting Directly - Stays in Host Country [E-Comerce]
-Using Overseas Distributors and Agents - They help to Sell the Product - they know the Market
-Setting up Overseas Business Units - Set up a Factory to make the Product - can have Subtle Changes to Match Local Needs
-Buying a Business Overseas - Merger or Takeover allows Business to Exploit their Production Unit |
| How may the Marketing Mix be Affected by Expanding Overseas? | -Customers will have Different Needs and Wants. Taste and Likes will be Different. Cultures, Religion may play a Role.
-Price may have to Differ accordingly to Consumer Income Level, or Competition. Changed to meet Needs
-Promotion will have to see the Cultural Difference. Need to make sure it will Reach them without Offending. Right Image, Translation and Platforms
-Place needs to match Needs and Wants of Consumers. Tariffs may make it more Expensive to Import. |
