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what is globalisation?
the process of by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange
what is an import?
bringing in goods from other countries
what is an export?
giving out goods to other countries
why would a business change location?
the cost of labour is too high in their home country
what is a multinational company?
a company that trades in more than 1 country (McDonalds etc)
what is a tariff?
a tax placed on an import to increase its price and decrease its demand
why do tariffs persuade consumers to switch from buying foreign imports to buy UK made goods instead?
because countries want their own citizens to buy their products, not pay other countries money for theirs
what are the advantages of tariffs?
UK produced goods don’t have to pay the tariff (will be cheaper), allow UK business to sell more as they gain a price advantage, protect new businesses from being swamped by international competition
what are the disadvantages of tariffs?
other countries may impose their tariffs in response to this on their imports, tariffs may just increase prices for consumers
what impacts do tariffs have on importers?
restricts growth on the business, struggle to enter new markets, now have to pay tax
what is a trade bloc?
a group of countries that make a trade agreement to not place tariffs on imports
what are trade barriers?
something that limits international trade
how can a business use the internet to become more global?
use of a website
how can a business change the marketing mix to become more global?
may need to adapt the company name, reliable method of transportation, prices need to be adjusted to other countries wage rates
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