Topic 1.9 Globalisation - Topic 1.9 Globalisation Content...

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Topic 1.9: Globalisation Content Learning outcomes Multinational  companies Discuss reasons for the growth of multinational companies. Analyse the role played by multinationals in the global business environment. Evaluate the impact of multinational companies on the host country. Regional trading blocs Explain the impact on business of a country that is a member of a regional economic group/bloc. – see separate worksheet 1. What is globalization and what does this mean for businesses? Globalization refers to the growing integration and independence of the world’s economies in terms of  economics, sociology and politics.  For a business it means that they can sell the same product in different countries, which is more efficient in  terms of marketing and production. The outcome of globalization is that tastes and habits across different  cultures are becoming more similar. The down side is that customers become more demanding because they  are reviews online, therefore meeting the needs might be harder so businesses will be more determined to  improve.  2. In what different ways have businesses become more global? Businesses have become more global by establishing overseas franchises. For example Honda and Toyota  have gone global by establishing manufacturing facilities overseas. Another way a business can be more  global is by exporting goods to benefit a larger customer base.  3. Identify the different indicators of globalization Higher value of world trade over time Higher levels of foreign direct investment For example Japanese car manufacturers have set up  production facilities in the USA and Europe  Multinational corporations accounting for a greater share of Gross Domestic Product Greater cultural awareness and exchange, such as the export of cultural foods and other cultural  exports  Spreading of multiculturalism, such as Hollywood and Bollywood movies  Higher spending on international travel and tourism  Information and Communication Technology throughout the world e.g. increased usage of internet  4. There are several factors that have contributed to the growth of globalization.  Through the use of your  textbook and discussion with your peers, identify and explain 5 such factors: a. Liberalization of international trade  Removed global trade barriers so this has encouraged more international trade  Protectionist methods such as tariffs and quotas have been reduced through the cooperation of  member states of the World Trade Organization  China and Eastern European countries have opened themselves to international trade so this  leads to more exports and imports. 
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