Business Revision

Globalization is the increasing global relationships of culture, people and economic activity.

Advantages

• it creates a global equality as large TNC's create jobs for many around the world.
• providing larger incomes for workers.
• positive multiplier effect for the area which TNC's locate to.

Disadvanatges

• Lead to the workers being exploited.
• Cultural homogisation 

Examples

Mcdonalds, Nike, Manchester united

Outsourcing is the movement of an organisation or a part of an organisation to another location

Advantages

• Closer to an emerging market
• Cheaper manufacturing costs
• offer products in an emerging market
• extending the product lifecycle
• specialism

Disadvanatges

• Bad publicity for the TNC
• Possible language barriers
• Job loss the host country 
• Quality issues 

Examples

Apple, Primark, Dell

Business become global in the intentions to have a growth in their sales and higher profit margins

Advantages

• Extending the product life cycle
• Increasing the sales revenue
• Become well known around the world

Disadvantages

• People lose their identity 
• companies begin 'taking over'

Examples

Addidas, KFC, M&S

This is when two companies join together this could be an equal partnership or sometimes one company will buy the other

Advanatages 

• increase in sales
• stability (sometimes)
• creates jobs 
• Increase in dividens for shareholders
• increased market share

Disadvantages

• could see some unemployment
• cause a company to become efficient 

Examples

Co-op/safeways, Disney/Marvel, VW/Bentley, Audi, Bugatti, Lamborghini Seat

Two countries which trade with each other both offering different products in order for them to both benefit 

Advanatge

• Both countries recieve cheaper products than they can make
• reduces conflicts
• promotes trade for both countries

Disadvantages

• unlikely to ever occur
• some countries have absalout advanatge meaning that one country will never gain trading partners

When a country is able to produce a product at a much cheaper price as they have specialised in the production of that product

Advanatges

• A country is able to be competitve globally 
• producing larger GDP as a result of being the cheapest globally

Disadvantages

• If the market decline the countries economy will collapse

Examples

Ugandas GDP is 95% made up from coffee

Place on imports by the government in the shape of taxs or sometime stops certain amounts entering the countries economy

Advanatges

• Protects infant industries 
• stops any country dumping

Disadvantages

• Maintains the developent gap
• Stop any developing country access the growing economies
• consumers generally have to pay more
• Companies are unable to grow effectively

Example

E.U put tariffs on importing goods into europe

When a country or trade bloc makes attempts at stopping all companies outcompete their local businesses and take over.

Advantages

• Reduces any risk to infant industries
• protects the countries economy

Disadvantages

• outside countries have no chance to enter
• Maintaing the development gap

its the advertising and branding around the world and due to language barriers can cause problems and misunderstandings 

Advanatges

• The companies image is branded across the whole world
• marketing economies of scale

Disadvantages

• Language barrier causing misunderstanding 
• Humiliating
• creating the wrong image

Examples

united airline giving Asians white flowers which are sign of bad luch and death

A multilateral organisation who are making attempts to liberalise trade by removing or reducing the tariffs put onto imported products

Advantages

• helping developing nation access to developed markets
• developing nations are given money to reduce their issues

Disadvanatges

• Infant inudstries under threat

removing limitations on trade which have being erected over a number of years 

Advanatges

• level playing field for all comptetitors
• reduced customer pay

Disadvanatges

• infant industries are in danger
• certain countries have absolout countries