Flashcards
Globalisation
Flashcards do conjunto (24)
- 1What is Globalisation?- the integration of international goods, services, finance and resource markets.
- Globalisation is about the nations around the worlds reducing the barriers that have prevented flows between them. It is a trend that sees people, goods, money and ideas moving around the world faster and more cheaply than before. - 2What is the 'Economic Problem'?Involves the question of how to satisfy unlimited wants with limited resources
- 3What is ‘Opportunity Cost’?What you have to for go (whether it be goods or services)
- 4Explain the ‘Law of Comparative Advantage’.This theory states that an economy should specialize in the production of goods and services that it can produce at a lower opportunity cost, even if it cannot produce a greater quantity than another economy.
Comparative advantage is focused on the relative efficiencies of production
When an economy specialises in production of a good in which it has a comparative advantage, it can trade with other economies using the income from its exports to pay for imports of products in which they do not have a comparative advantage.
To determine comparative advantage we must calculate the opportunity costs within each economy - 5Describe and give examples of the primary industry:involves producing something that has been provided by nature
e.g. all types of farming, fishing, timber-getting and mining - 6Describe and give examples of the secondary industry:taking a raw material and making it into something
e.g. car manufacturing, the iron ore to make the steel comes from primary industry (mining) - 7Describe and give examples of the tertiary industry:the is the industry that provides service. It usually involves people doing something (service) for another person
e.g. shop keepers, teachers, doctors - 8Describe and give examples of the Quaternary Industry:covers services that deal with knowledge and the transfer of knowledge
e.g. television, new, computing, telecommunications, teachers - 9Describe and give examples of the Quinary Industry:includes services that have traditionally been performed in the home
e.g. waiters, chefs, housewives and house husbands, dog walkers - 10Australia's Trade: 1950smainly traded with the United Kingdom and other European countries
- 11Australia's Trade: 1973UK joined the European Union (EU) and so shifted its focus toward Europe and way from Australia. Once the UK joined the European trading bloc it resulted in Australia losing many of its traditional export market in the UK.
In subsequent decades, Australia’s trade patterns shifted and in the 1960’s Japan became the major buyer of our exports. - 12Australia's Trade: 1980sAs Japanese economic growth rates began to slow down, the direction of our trade moved toward other economies in Asia, where economic growth rates were the highest in the world e.g. North-east Asian and ASEAN countries
e.g. North East Asian and the Association of South East Asian Nations (ASEAN) countries. - 13Australia's Trade: RecentlyChina, South Korea and the ASEAN countries have become increasingly important as export markets in the 2000’s, and China have moved to the number one destination for our exports.
Although Australia does not see a high proportion of its outputs to other advanced economies, it buys (i.e. imports) a substantial amount from these economies, in particular the United States and Germany.
•This reflects the importance of imports from these countries both for business equipment (capital) and for many consumer items. - 14Changing composition of Australia’s trade in recent decades: Exports-Metal ores and minerals ($97 billion)
Coal ($40 billion)
Tourism related services (valued at $36 billion) - 15Changing composition of Australia’s trade in recent decades: Imports-Australia imports a considerable amount of textiles, clothing and footwear (TCF) from China. China has a comparative advantage in the production of these goods as the labour costs in China are much lower than in Australia.
- 164 methods of expanding a business overseas:1. Setting up a joint venture with an international business
e.g. Joint venture with a Brazilian company to expand their market reach
2. Establishing a production plant overseas
e.g. Rip Curl established plants in Mexico and Fiji to take advantage of lower labour costs
3. Licensing another company to sell you products
e.g. Rip Curl licenses surf shops in France to sell their products
4. Exporting goods to other countries
e.g. first method used to expand o/s was to export wetsuits to the US - 17Reasons why a business would expand globally:1. Expanding the number of potential customers
2. Increasing sales revenues
Spreading the risk
3. Getting access to cheaper or better resources
4. Taxation and legal reasons - 18Issues with a company going global- Ethical issues:Global corporate social responsibility
Ecologically sustainable practices
Types of raw materials to be used - 19Issues with a company going global- Environment issues:d
- 20Issues with a company going global-Employment issues:Approaches to staffing
Cultural diversity
Labour law variations
Shortage of skilled labour - 21Issues with a company going global- Financial Issues:Methods of payment
Insurance costs
Credit risks - 22Issues with a company going global- Legal Issues:Unique legal system
Difficulties in resolving contractual disputes - 23Issues with a company going global- Taxation IssuesTax obligations
- 244 international stock exchanges1. New York Stock Exchange (NYSE)- Head Quartered in New York City
2. NASDAQ OMX- Headquartered in New York City
3. Tokyo Stock Exchange- Headquartered in Tokyo
4. London Stock Exchange- Head Quartered in London
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- Descrição
- 10 Commerce FlashCards sobre Globalisation, criado por eden_rowan em 26-07-2015.
- Criado por
- eden_rowan
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