Globalisation

Characteristics of a Global Business

Some characteristics of global companies include:

• Operating and selling standardized products and services all over the world.
• Treating the world like one single country and focuses on similarities between people globally.
• Satisfying common needs and wants everywhere.
• Making products anywhere, usually in countries with cheap labour. Examples of global businesses include McDonalds and Coca Cola

Reasons for developing on a global scale

There are many reasons for global business developing including:

• Becoming global increases sales opportunities, leading to higher profits and economies of scale, which reduce costs.
• Computer-Aided Manufacturing (CAM) enables high-quality mass production to meet global demand.
• Technological advances and video conferencing make managing global businesses easier without the need for travel.
• The internet helps develop a global brand, connects with consumers worldwide, and promotes global awareness and interest in products.
• World Trade Organization (WTO) deregulation supports global business operations by opening previously restricted markets, exemplified by China's recent entry into global trading.
• Computer-Aided Design (CAD) allows for efficient product design and rapid market adaptation, making new products quickly and cost-effectively.