Globalisation
The way that people around the world have become more connected politically,
economically and socially.
Move towards an integrated world.
Globalization of business is the change in a business from a company associated with a single
country to one that operates in multiple countries.
TWO TYPES
Market globalisation
Decline in barriers to selling in countries other than the come country
Makes it easier to sell products internationally
Companies need to take culture into consideration when they enter international markets
Production globalization
Sourcing materials and services from other countries to gain price advantages
Leads to lower prices for consumers
Impacts employment levels in the source country
EFFECTS OF GLOBALISATION
Positive and negative effects
Individual level
Standard and quality of life
Improved roads and transport
Improved health care
Improved education
Negative impact on developed nations as people leave to developing countries
, Business level
Affects the products life cycle and the balance sheet
Developed countries can suffer economically with heaper resources in developing countries
Government level
Monetary regulations and trade
Companies invest in countries with a lower interest rate
Trade policies must be mutually beneficial
Trade policies need to strike a balance
ADVANTAGES
Increased competition
Lower price
Better variety of goods
Job creation in developing countries
Improved standard of living in developing countries
DISADVANATGES
Multinationals can have a negative impact on developing countries
Skilled labour moves out of developed countries (more job opportunity)
Wages can be too low
Poor working conditions in developing countries
Has advantaged the rich
Cultural dilution
Channels for consumer complaints
The way that people around the world have become more connected politically,
economically and socially.
Move towards an integrated world.
Globalization of business is the change in a business from a company associated with a single
country to one that operates in multiple countries.
TWO TYPES
Market globalisation
Decline in barriers to selling in countries other than the come country
Makes it easier to sell products internationally
Companies need to take culture into consideration when they enter international markets
Production globalization
Sourcing materials and services from other countries to gain price advantages
Leads to lower prices for consumers
Impacts employment levels in the source country
EFFECTS OF GLOBALISATION
Positive and negative effects
Individual level
Standard and quality of life
Improved roads and transport
Improved health care
Improved education
Negative impact on developed nations as people leave to developing countries
, Business level
Affects the products life cycle and the balance sheet
Developed countries can suffer economically with heaper resources in developing countries
Government level
Monetary regulations and trade
Companies invest in countries with a lower interest rate
Trade policies must be mutually beneficial
Trade policies need to strike a balance
ADVANTAGES
Increased competition
Lower price
Better variety of goods
Job creation in developing countries
Improved standard of living in developing countries
DISADVANATGES
Multinationals can have a negative impact on developing countries
Skilled labour moves out of developed countries (more job opportunity)
Wages can be too low
Poor working conditions in developing countries
Has advantaged the rich
Cultural dilution
Channels for consumer complaints
