GCSE BUSINESS 6.3 Globalisation

What is globalisation?

• How different businesses in different countries have become connected.

• How different people in different countries have become connected.

• How different incomes in different countries have become connected.

• How different interest rates in different countries have become connected.

Globalisation does NOT include:

• Movement of goods and services

• Movement of tourists

• Movement of workers

• Movement of capital (money)

Which of these has NOT impacted upon increased globalisation:

• Transport

• Telecommunications and the internet

• Increased life expectancy

• Free trade arrangements

Which does not come under the heading of globalisation:

• The growth of multinational companies (MNCs)

• International branding

• International competition

• Motivation and retention statistics

Which of these is NOT an advantage of being a multi-national company?

• High employee turnover

• Increasing sales

• Spreading risk

• Lower costs

Which of these is not an advantage to a country of hosting a multi-national company?

• Creating demand for the host country

• Closing local businesses

• Taxes and public services paid to the country

• Lower prices and costs for the host country

Which two are examples of disadvantages to a country of hosting a MNC?

• Increased profits

• Tourism in host country increasing

• Business closures in the country

• Outflows of money to other countries

Which is NOT a benefit to a UK company of locating in another country?

• Lower costs

• Expertise

• Demand increase

• Language barrier

Which is not a disadvantage to UK businesses of locating abroad?

• Higher demand

• Quality control may be more difficult

• Language barrier

• Transporting goods

Which of these does not constitute international branding?

• image

• reputation

• business age

• values