2.4 - globalisation (1)

2.4 - globalisation (1)

1. Keywords

   • Economies of scale - When a business's unit costs of production fall as its output rises and the business expands
   • Globalisation - The trend for markets to become worldwide in scope
   • Multinational company (MNC) - A company that produces goods and services in more than one country
   • Takeover - when one business buys control of another one
   • international trade - The selling of goods and services across nations
   • Product design - Translates the needs of consumers or ideas from entrepreneurs into a saleable product
   • Inward investment - When governments, businesses and individuals invest capital into another country, e.g. building new factories or buying companies

2. As travel has become easier and cheaper, workers have also moved oversees, MNCs have become increasingly dominant in supplying products, they are also called transnational corporations

   • Examples are amazon and apple

3. International trade is the selling of goods and services oversees

   • This diagram shows massive rise in international trade from 1960 to 2015
   • International trade occurs due to large increases in income in countries which leads to increasing demand for products from other countries e.g. BMWs from Germany

4. Movement across international borders. With ease and cheapness of travel people from poor countires have increasingly migrated to richer countries in Europe and North America

   • Business and individuals have invested more money in other countries looking for higher returns on their investment. Immigrant workers send money back to their family in their country, Banks move large amounts of money from and to different countries

5. An example of MNC is apple, they make phones in China and sell them in 69 other countries

6. Benefits of Globalisation

   • Rapid growth
   • Inward Investment
   • Cheaper resources -including cheaper imported coal and cheaper costs of labour

7. Drawbacks of Globalisation

   • Fierce competition oversees
   • New competitors from abroad
   • Threat of takeover from foreign businesses

Images and files in the map