OCR GCSE Business : Understanding Globalisation in Business

What is globalisation?

• The process of countries becoming more isolated.

• The increasing interconnectedness of economies, businesses, and cultures worldwide.

• The decline of international trade.

• The reduction of communication technologies.

Which of the following is a key feature of globalisation?

• Decreased trade between countries.

• Multinational Corporations (MNCs) operating in multiple countries.

• Slower communication technologies.

• Reduced foreign investment.

What is one advantage of globalisation for businesses?

• Increased competition from local firms.

• Larger market access to global customers.

• Higher costs of resources.

• Limited innovation opportunities.

Which of the following is a disadvantage of globalisation for businesses?

• Access to cheaper resources.

• Economies of scale.

• Increased competition from global firms.

• More innovation.

How does globalisation impact consumers?

• Fewer choices of goods and services.

• Higher prices due to lack of competition.

• More choice and lower prices.

• Improved quality of all products.

What is one way governments influence globalisation?

• By eliminating all trade agreements.

• By imposing tariffs and quotas on imports.

• By reducing regulations on environmental standards.

• By encouraging economic isolation.

What is a potential ethical issue associated with globalisation?

• Improved working conditions worldwide.

• Environmental harm in some countries.

• Decreased economic dependency.

• Increased job opportunities in all countries.

Which of the following is an example of a trade agreement?

• A local business contract.

• A deal between two companies in the same country.

• An agreement like the European Union (EU) or World Trade Organization (WTO).

• A personal agreement between two individuals.

What is one reason businesses might experience job losses due to globalisation?

• Jobs moving to countries with cheaper labour.

• Increased local job opportunities.

• Higher wages in all countries.

• Decreased competition from global firms.

What is a benefit of economies of scale for businesses?

• Increased production costs.

• Producing in bulk lowers costs.

• Limited access to global markets.

• Reduced innovation.