Business And The International Economy: The Importance Of Globalisation (Copy)
Cheat Sheet: 6.3.1 Globalisation
Concept of Globalisation
| Concept | Explanation | Example |
|---|---|---|
| Globalisation | The increasing integration of economies, markets, and businesses worldwide | Apple designs in USA, manufactures in China, sells globally |
| Reasons | Improved transport, internet/IT, trade liberalisation, growth of multinationals | Amazon operating in many countries |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Opportunities of Globalisation
| Opportunity | Explanation | Example |
|---|---|---|
| Larger Markets | Access to global customers | Nike selling shoes worldwide |
| Lower Costs | Cheaper labour & resources overseas | Factories in Vietnam reduce costs |
| Economies of Scale | Higher production = lower unit costs | Car companies producing millions of vehicles |
| Access to Resources | Raw materials & technology across borders | Tech firms sourcing rare minerals globally |
Threats of Globalisation
| Threat | Explanation | Example |
|---|---|---|
| Increased Competition | Foreign firms enter local markets | Local shops competing with Walmart |
| Vulnerability | Global supply chain disruptions | COVID-19 halted global trade |
| Dependence on Other Economies | Recession abroad reduces exports | European crisis affects Asian exporters |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Government Use of Trade Barriers
| Tool | Purpose | Example |
|---|---|---|
| Import Tariffs | Taxes on imports → make them expensive, protect domestic industries | 25% tariff on imported steel |
| Import Quotas | Limit number of imports → protect local firms | Quota on sugar imports to protect farmers |
Quick Revision Bullets
- Globalisation = worldwide integration of trade & business
- Driven by technology, transport, liberalisation, MNCs
- Opportunities = bigger markets, lower costs, EOS, global resources
- Threats = more competition, economic vulnerability, supply chain risks
- Govs may use tariffs & quotas to protect domestic industries
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course