How UK Businesses Compete Internationally Flashcards

All 7 cards in this deck

What is globalisation?

Companies operating internationally or on a global scale, with most of the world's economies working together to provide and produce goods and services.

True or false? Imports are the goods and services a country sells to other countries.

False. Imports enter a country; exports are the products sold to other countries.

Give two ways a UK business can compete internationally through better design.

Innovative or unique features competitors do not offer; designs adapted to local tastes (sizing, colours, cultural beliefs).

Give two ways a UK business can offer higher quality products at lower prices than overseas rivals.

Buying cheaper supplies or using cheaper labour abroad; using technology and economies of scale to cut unit costs.

Give two drawbacks of globalisation for a UK business.

More competition from overseas businesses in the UK market; cultural, language and logistical problems that add cost and risk.

Give one benefit to a UK business of selling into a larger, global market.

Access to more customers, giving the potential for increased sales and profit.

True or false? Globalisation gives a UK business access to a wider pool of labour.

True. It can recruit workers from other countries, or locate production where labour is cheaper or more skilled.