Globalisation

• the process through which everyday life is becoming standardised around the world due to increased integration through trade and culture 

how it occurs:

• better international transport

• better communication technology 

• increased movement of people 

• more international agreements 

multinational: a business which operates in more than one country 

advantages:

• wider target market

• cheaper labour and utilities 

• risk is spread out

• reputation as market leader

disadvantages:

• loss of focus on original market 

• need to adapt product for cultural/language reasons

• fluctuating exchange rates 

• unethical practices → poor reputation 

barriers to international trade:

protectionist measure: action taken by a nation to protect economic growth — prevent loss of capital through imports 

protectionist measures 

• tariffs - tax on imported goods

• quota - limit on amount of goods that can be imported 

• trading bloc - group of countries that make an agreement - trade to boost economies