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Questions and Answers
What has enabled the globalisation of business?
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.
Goods and services are produced exclusively in the company's home country.
False (B)
What is a Multinational Enterprise (MNE)?
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.
The lowering of _________ has facilitated the movement of products, services, and people globally.
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Match the following terms with their descriptions:
Match the following terms with their descriptions:
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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.
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