Business & Globalisation Flashcards

All 7 cards in this deck

What is globalisation?

The growing integration of the world's economies, so businesses trade, source and operate across national borders.

What are imports?

Goods and services bought from businesses in other countries.

Give one benefit and one drawback of imports for a UK business.

Benefit: cheaper raw materials/components lower costs. Drawback: more competition from overseas rivals in the UK market.

Give two benefits to a business of exporting.

Access to a much larger customer base, raising sales and revenue, and less reliance on the domestic market.

Give two drawbacks to a business of exporting.

Extra transport and administration costs, and the need to adapt products to different laws and tastes.

What is a multinational company?

A business with operations or production facilities in more than one country.

Give two reasons a multinational relocates production to another country.

Lower labour and production costs, and being closer to raw materials or to new customer markets.