Globalisation (OCR GCSE Business): Flashcards

Process where businesses worldwide become increasingly interconnected

Producing parts of a product in different countries to reduce costs

Reduce transport costs via larger ships & better networks

Lower tariffs & quotas make international trade accessible

Makes international business easier & cheaper; enables sharing knowledge

Companies that operate in multiple countries

Each country provides potential customers, increasing sales

Reduces dependence on a single country, spreading risk

Production in countries with lower costs for labour/materials

Lower production costs, access to cheap labour & land

Higher transport costs for moving goods

Advertising & promotions influenced by local culture

Words can have different meanings in different languages

Currency value fluctuations affect export/import prices

Adapting products & promotions to local markets