4.1 Globalisation

4.1 Globalisation

1. 4.1.1 Growing Economies

   • BRICS+MINT
     • increasing demand
       • disposable income
         • YED becomes more inelastic
           • luxury goods demanded
   • increase imports/exports
   • affordability of luxury goods
     • increase of skills
   • Indicators of growth
     • GDP
       • productivity of the country
         • increased disposable income
     • Literacy
       • likely hood of employment
     • health
       • incentives from government for gym meberships

2. 4.1.2 International trade and business groth

   • exports and imports
     • balance of payments
   • specialisation and competitive advantage
     • comparative advantages
   • Foreign Direct investment (FDI)
     • set up of shops and factories
     • Invest in local infrastructure
     • Joint ventures + merges

3. 4.1.3 Factors contributing to increased globalisation

   • reduction of international trade barriers
     • tariffs + quotas
   • political change
     • change in leg. or law
       • e.g. length of contract
   • transport and communication
     • improvement of internet
     • infrastructure
   • impact of MNCs
     • movement of labour, Capital, money
   • Migration
     • labour
     • remittance payments
   • growth of the global labour force
     • outsourcing
       • on average 3 employees per gym
       • HR outsourced
   • Structural change
     • standards of living improving
       • more disposable income
     • health focus from government and people

4. 4.1.4 protectionism

   • protect own trade and bisinesses
   • revenue for government
   • prevents dumping
   • Tariffs
     • more expensive imports
       • higher demand of domestic
   • Balance of payments
   • import quotas
     • lower supply of goods imported
   • government legislation
     • regulations + standards
   • domestic subsidies
     • funds to support health related businesses
       • e.g. obesity
   • problems
     • deterrent some business
     • reduces choice for customers
     • ine;astic products unaffected

5. 4.1.5 Trading blocs

   • EU
     • 27 countries
     • free movement
     • one monetary policy
     • no trade barries
   • ASEAN
   • NAFTA
   • oppotunites
     • reduces cost
     • wider choice of products
   • drawbacks
     • less money form tariffs
     • all follow a set of rules