Global Considerations

What is globalisation?

Globalisation is the effect of hi-tech communications, lower transport costs, and free trade, which have transformed the world into a single, integrated global market.

What are the opportunities and threats of globalisation?

Opportunities: access to larger markets.
Threats: increased competition from global businesses.

Why must businesses consider overseas competitors when planning?

They must build competitive advantage, reduce costs, improve quality, and understand rivals' strengths and strategies.

What are overseas markets?

Markets located outside the business’s home country where it can sell its goods or services.

What is offshoring labour?

Moving part of a business’s operations overseas to reduce labour and operational costs.

What is an exchange rate?

The price of one country’s currency expressed in terms of another. It affects the cost of trading internationally.

Why must businesses be aware of exchange rates?

To understand costs when buying/selling overseas and to manage currency conversions from customers.

What are patents, copyrights, and trademarks?

Legal protections for intellectual property (IP) such as inventions, brand names, and creative work.

Why is IP protection harder internationally?

IP laws vary by country, making it harder to stop pirated or knockoff products.

What did the McDonald’s vs Hungry Jack’s case show?

IP disputes can be complex; Hungry Jack’s didn’t infringe the trademark, but was found to mislead customers with its “25% more Aussie beef” claim.

What are the benefits of global online sales?

Lower premises costs, no need for in-store staff, access to international customers.

What are the challenges of online global sales?

Website costs, technical expertise, crashes, and potential lost sales during downtime.