IGCSE Business Globalisation 2

Globalisation refers to:

• the financial data used to measure the success of a multinational company

• the interconnected nature of business activities across the world

• the interdependencies that underpin decision-making in a large organisation

• the relationships that exist between the functional areas of a business

Shanco plc has managed to reduce its transport costs from £0.7 million in 2019 to £0.6 million in

2020.

What percentage reduction in transport costs has Shanco plc achieved?

• 6%

• 7%

• 14.3%

• 16.7%

Which of the following is a POTENTIAL disadvantage of globalisation for businesses operating in developed countries?

• Access to a wider pool of highly skilled labour willing to relocate internationally.

• Increased opportunities for exporting niche goods and services to emerging markets.

• Heightened competition from businesses in countries with lower labour costs, potentially leading to job losses domestically.

• The ability to source a wider variety of raw materials and components at potentially lower prices globally.

Which of the following is the MOST direct cause of increased globalisation in recent decades?

• Increased tariffs and trade barriers aimed at protecting local industries.

• The rise of isolated national economies focused on self-sufficiency

• Advancements in technology and communication, making international interaction easier and faster.

• A significant decrease in international travel and migration due to global pandemics.

Which of the following is a key benefit of globalisation for consumers?

• Limited access to international products and services.

• Reduced innovation due to market saturation.

• Higher prices due to increased competition.

• Greater variety of goods and services at competitive prices.

What is a common strategy businesses use to remain competitive in a globalised market?

• Focusing solely on domestic markets.

• Increasing production costs to improve quality.

• Reducing product variety to streamline operations.

• Adopting advanced technologies to enhance efficiency.

How has globalisation impacted employment in developing countries?

• Creation of new job opportunities in manufacturing and services.

• Increased access to high-paying jobs in technology sectors.

• Reduction in the need for skilled labor.

• Decreased job opportunities due to outsourcing.