Global Business and Trade Dynamics

Questions and Answers

What has enabled the globalisation of business?

Isolated national markets

Increased tariffs and trade restrictions

Local production only

Liberalisation of trade policies (correct)

Goods and services are produced exclusively in the company's home country.

False

What is a Multinational Enterprise (MNE)?

A company operating in multiple countries.

The lowering of _________ has facilitated the movement of products, services, and people globally.

<p>trade barriers</p> Signup and view all the answers

Match the following terms with their descriptions:

<p>Globalisation = The process of increasing interconnectedness across the globe. Trade barriers = Government-imposed restrictions on international trade. Multinational Enterprise = A company that operates in multiple countries. Networked mode = Production and services distributed across various countries.</p> Signup and view all the answers

Study Notes

Globalisation of Business

Multinational Enterprises (MNEs) are not limited to their home country's operations anymore.
Companies now produce goods and services across various countries, forming complex production networks.
The globalisation process enables businesses to leverage resources, markets, and talent from multiple regions.

Impact of Policies on Globalisation

Trade policies are increasingly lowering barriers, promoting international commerce.
Reforms facilitate faster and easier movement of products, services, and labor across borders.
The reduction of tariffs, quotas, and regulatory hurdles encourages cross-border trade and investment.

Effects of Global Production Networks

Global production contributes to cost efficiency and increased competitiveness for businesses.
Companies can specialize in core competencies, outsourcing production to the most efficient regions.
Creation of diverse supply chains enhances flexibility and resilience against local market fluctuations.

Importance of Market Expansion

Expanding into foreign markets allows companies to tap into new consumer bases and revenue streams.
Access to a global workforce provides businesses with diverse talent and innovation opportunities.
Global presence aids in risk diversification, mitigating challenges in any single market.

Description

Explore the impact of globalization on business operations across multiple countries. This quiz examines how reduced trade barriers and the facilitation of product and service movement contribute to the interconnectedness of global markets.