2.1.3 - Globalisation

What is globalisation?

• The process of countries becoming more interconnected

• The process of countries becoming more isolated

• The process of countries reducing trade

• The process of countries increasing tariffs

Which of the following is a result of globalization?

• Countries becoming more isolated

• Decrease in free movement of labor

• Reduction in international trade

• Increased use of e-commerce

What is one of the pros of globalization?

• Decreased access to raw materials

• Smaller target market

• Higher production costs

• Easier to sell products abroad

How has globalization affected raw materials?

• No change in raw material prices

• Access to cheaper raw materials

• Decreased access to raw materials

• Increased prices of raw materials

What is one of the cons of globalization?

• Lower production costs

• Higher prices for raw materials

• Decreased competition from abroad

• Increased competition from abroad

How can exchange rates impact businesses in a globalized market?

• They have no impact

• They make businesses more competitive

• They can make businesses less price competitive

• They always benefit businesses

What is a potential risk of outsourcing due to globalization?

• Increased tariffs

• Decreased access to labor

• Becoming more unethical

• Higher production costs

How does globalization benefit large businesses?

• They can exploit all benefits of globalization

• They have higher production costs

• They face more restrictions

• They have less access to international markets

What is a benefit of globalization for small businesses?

• Higher production costs

• Decreased use of e-commerce

• Access to a smaller target market

• Access to a larger target market

What is one way businesses might adapt their marketing mix due to globalization?

• Decrease advertising

• Reduce product quality

• Adapt packaging for cultural differences

• Increase prices