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Define these terms and provide an example for each term to demonstrate your understanding - VCE - SSCE Business Management - Question 1 - 2004 - Paper 1
Question 1
Define these terms and provide an example for each term to demonstrate your understanding. a. globalisation b. outsourcing
Worked Solution & Example Answer:Define these terms and provide an example for each term to demonstrate your understanding - VCE - SSCE Business Management - Question 1 - 2004 - Paper 1
Step 1
a. globalisation
Answer
Globalisation refers to the removal of trade barriers across countries, enabling organisations to move their competitive boundaries from a national to an international stage. Many organisations globalise to enhance their competitiveness, expand their operations, and seize opportunities to access new markets. For example, a local manufacturer may establish operations in other countries to tap into cheaper labor markets and wider customer bases.
Step 2
b. outsourcing
Answer
Outsourcing is a commercial arrangement where one business provides services to another business. This strategy allows large-scale businesses to concentrate on their core functions while delegating other parts of the business to external organisations. For instance, a tech company may outsource its customer support operations to a specialist firm that can manage these services more efficiently, allowing the tech company to focus on product development.