7.1 - Globalization


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  • Created by: Amy_Hut
  • Created on: 18-03-21 17:47
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  • Aim to develop recognisable 'brand'
    • Employ one marketing strategy
      • Generates economies of scale
        • Reduces costs
    • Global Marketing
      • Globalisation
        • Distribution & Consumption
          • Goods made in LICs/NEEs exported & sold to HICs
            • As NEEs develop, their demand is similar to HICs
              • Predicted that:
                • Consumption will drive trade more than production locations
                  • Fastest trade route will be between India & China
                • Asia will export more of its products to other Asian nations
        • Trade Agreements
          • Advantages of trading entities
            • Global scale
              • Help members develop their economy
                • Improve standard of living
              • Increase global trade & co-operation on trade issues
              • Improve global peace & security
                • Reduce conflict
            • Regional scale
              • Share technology
              • Bigger representation in world affairs
              • Allow freedom of movement of trade
              • Raise education and healthcare access
        • Factors in Globalisation
          • Financial
            • Deregulation of financial markets
              • Allowed for removal or relaxing of barriers
            • High speed electronic trading systems & global connectivity
              • Transactions completed quickly & securely
            • Improved communications technology
              • Made international trading easier & faster
          • Transport
          • Security
            • Initiatives introduced to alleviate threats
              • E.g. World Customs Organization & EU
            • Supply chain security
            • Food & bio-security
          • Management & Information systems
            • Internet
              • Virtually free telecommunications & video conferencing
              • Integrated ICT management systems
            • 'Just in time' technology
              • Production is led by customer orders rather than to build stock
            • Systems for remote management & cost efficiency
              • Out-souring more
  • Generates economies of scale
    • Reduces costs
  • Patterns of Production
    • In 1954 - 95% of manufacturing was in industrialised economies
      • Europe, North America & Japan
    • Decentralisation
      • Result of TNCs
    • Globalisation
      • Distribution & Consumption
        • Goods made in LICs/NEEs exported & sold to HICs
          • As NEEs develop, their demand is similar to HICs
            • Predicted that:
              • Consumption will drive trade more than production locations
                • Fastest trade route will be between India & China
              • Asia will export more of its products to other Asian nations
      • Trade Agreements
        • Advantages of trading entities
          • Global scale
            • Help members develop their economy
              • Improve standard of living
            • Increase global trade & co-operation on trade issues
            • Improve global peace & security
              • Reduce conflict
          • Regional scale
            • Share technology
            • Bigger representation in world affairs
            • Allow freedom of movement of trade
            • Raise education and healthcare access
      • Factors in Globalisation
        • Financial
          • Deregulation of financial markets
            • Allowed for removal or relaxing of barriers
          • High speed electronic trading systems & global connectivity
            • Transactions completed quickly & securely
          • Improved communications technology
            • Made international trading easier & faster
        • Transport
        • Security
          • Initiatives introduced to alleviate threats
            • E.g. World Customs Organization & EU
          • Supply chain security
          • Food & bio-security
        • Management & Information systems
          • Internet
            • Virtually free telecommunications & video conferencing
            • Integrated ICT management systems
          • 'Just in time' technology
            • Production is led by customer orders rather than to build stock
          • Systems for remote management & cost efficiency
            • Out-souring more
    • CS = Detroit
  • Decentralisation
    • Result of TNCs
  • Government Support
    • Government objective is to increase exports
      • Governments at national level will have departments with ease of exports as function
        • E.g. UK Trade and Investment (UKTI)
          • Offer support/advice on all aspects of trade
    • Dry ports encouraged in developing countries
      • Inland ports and nearer to businesses
        • Save time and money on transport
  • Governments at national level will have departments with ease of exports as function
    • E.g. UK Trade and Investment (UKTI)
      • Offer support/advice on all aspects of trade
  • Dry ports encouraged in developing countries
    • Inland ports and nearer to businesses
      • Save time and money on transport
  • Products and commodities can be shipped quicker & in larger quantities
    • Increased aircraft size
    • Growth of low-cost airlines & air freight
    • Standardised containers
  • Spatial separation
    • High order business at HQ, low order at hubs around globe
  • Loss of some sovereignty
    • Decisions are centralised

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