13020242
Description
Mind Map by Rhianna Nicoll, updated more than 1 year ago
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Created by Rhianna Nicoll
over 6 years ago
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2.4 - globalisation (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
- Economies of scale - When a business's unit costs of production fall as its
output rises and the business expands
- 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
- Examples are amazon and apple
- 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
- This diagram shows massive rise in
international trade from 1960 to 2015
- 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
- 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
- An example of MNC is apple, they make phones
in China and sell them in 69 other countries
- Benefits of Globalisation
- Rapid growth
- Inward Investment
- Cheaper resources -including cheaper imported coal and cheaper costs of labour
- Rapid growth
- Drawbacks of Globalisation
- Fierce competition oversees
- New competitors from abroad
- Threat of takeover from foreign businesses
- Fierce competition oversees
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