Globalisation

Globalisation

1. Northern Ireland

   • Benefits
     • Opportunity to trade on an equal basis with countries all over the world
     • Civic pride as the country is able to compete in a global market
     • Attracting investment in jobs/communities in Northern Ireland
     • Building relationships with countries around the world
     • Tourism to Northern Ireland

2. Employee

   • Benefits
     • Opportunity for employees to gain new skills or promotion as the business expands and new job roles become available
   • Drawbacks
     • Redundancies due to under pricing from the foreign businesses
     • Pressure may be placed on employees to travel to other countries and to remain there to establish a business

3. Consumer

   • Benefits
     • Variety of products and services and a larger range of service or goods providers
     • Increased competition can lead to better value

4. Business

   • Benefits
     • Globalisation gives a business a larger market and so this could lead to increased trade
     • The opportunity to learn more efficient business methods through the sharing of ideas with other countries in the global market
     • Export opportunities in a global market, which can lead to increased profit
   • Drawbacks
     • Money will be needed for retraining staff to work in a global market, e.g. to deal with the skills needed to break into foreign markets
     • Transport arrangements can be expensive and take time to organise, which may mean that the business may lose money in the short term
     • Language barriers- it can be difficult to communicate in a market (particularly with customers) where a different language is spoken
     • Closure of businesses due to the increased competition of being in a global market
     • Fluctuation in money markets- if a business is importing into the UK the price of the good will depend on the strength of the pound against the currency of the other country, e.g. if Tesco buys Belgian chocolates at one euro a unit, it will cost much more if one euro is worth 90p than if one is worth 70p
     • More competition for local businesses. In a global market, business from other countries can compete for a share in the local market