How do technological advancements contribute to globalisation?
Lower business costs
Order the main drivers of globalisation from most to least significant:
1️⃣ Technological Advancements
2️⃣ Reduction in Trade Barriers
3️⃣ Liberalisation of Financial Markets
4️⃣ Multinational Corporations
Cultural differences pose a challenge for businesses adapting to globalisation.
True
The effects of globalisation on businesses can be summarised as opportunities and challenges
What is one of the challenges of globalisation for businesses?
Regulatory differences
What is one example of logistical complexity in globalisation?
Coordinating global supply chains
Order the steps businesses must take to succeed in globalisation:
1️⃣ Leverage the benefits
2️⃣ Manage the challenges
Globalisation integrates national markets through cross-border trade, investment, and technology spread
Which type of business activity is a key driver of globalisation?
Multinational corporations
What role do multinational corporations play in globalisation?
International production activities
Cultural differences can increase the complexity and cost of adapting products and marketing
Sourcing from lower-cost regions allows businesses to achieve significant profitability
International trade involves the exchange of goods and services across national borders.
True
Globalisation has led to the integration of national markets into a single global marketplace.
True
Walmart's failure in Germany was partly due to a lack of understanding of local consumer preferences.
True
The main causes of globalisation include technological advancements, reduction in trade barriers, liberalisation of financial markets, and multinational corporations
What role do multinational corporations play in globalisation?
International production and sourcing
One of the key challenges of globalisation is increased competition from foreign firms
Globalisation provides businesses with opportunities such as increased market access but also challenges such as increased competition
Larger global operations allow businesses to achieve greater economies of scale
Increased competition is a significant challenge of globalisation for businesses
True
What is the definition of globalisation?
Interconnectedness of businesses worldwide
Technological advancements have made it cheaper to conduct business across borders
True
Liberalisation of financial markets enables the free movement of capital
Lowering tariffs and quotas is a key driver of globalisation.
True
What is one key benefit of globalisation for businesses in terms of market access?
Reaching new customers
Which company exemplifies successful globalisation by achieving economies of scale and addressing cultural challenges?
Nike
What is generally less resource-intensive, international trade or foreign direct investment?
International trade
What is one key factor in Coca-Cola's successful globalisation?
Strong global brand
What is the definition of globalisation in terms of interconnectedness and interdependence?
Integration of national economies
The reduction in trade barriers facilitates the flow of goods, services, and capital across national boundaries.
True
Match the opportunity of globalisation with its description:
Increased Market Access ↔️ Access to new customers globally
Cost Savings ↔️ Lower input and labor costs
Economies of Scale ↔️ Larger operations for efficiency
Knowledge Sharing ↔️ Access to best practices
How has globalisation been influenced by improvements in transportation and communication technology?
Easier and cheaper business
What is one of the opportunities of globalisation for businesses?
Increased market access
Match the benefit of globalisation with its description:
Increased Market Access ↔️ Expands customer base globally
Cost Savings ↔️ Reduces expenses through global sourcing
Economies of Scale ↔️ Lower costs from larger operations
Knowledge Sharing ↔️ Improves capabilities through global insights
Larger global operations allow businesses to achieve economies of scale
Foreign Direct Investment requires a longer-term commitment than international trade
True
Match the cause of globalisation with its description:
Technological Advancements ↔️ Improvements in transportation and communication
Reduction in Trade Barriers ↔️ Lower tariffs and quotas
Liberalisation of Financial Markets ↔️ Deregulation of capital flows
Multinational Corporations ↔️ Companies operating in multiple countries
What is one of the main effects of reducing trade barriers?
Increased flow of goods
Technological advancements have made cross-border business cheaper and easier