The impact of globalisation on businesses - EduqasWhat is globalisation?
In business, globalisation means operating on an international scale to provide or produce goods and services. Almost all of the goods we use are made of parts sourced from around the world.
Chris and Julie talk about the impact of globalisation for their business
Globalisation refers to businesses operating internationally or on a global scale. This involves most of the world鈥檚 economies working together to provide and produce goods and services. importGoods or services which enter a country., exportsProducts and services produced by a country and sold to other countries around the world. and business location are all key components of globalisation.
Globalisation involves businesses increasing international tradeThe buying and selling of goods and services between different countries. through buying and selling around the world, often due to the cost or availability of products or cheap labour. Additionally, some products have a reputation for being from a certain part of the world, so versions of the product from that location may be highly desired. For example, pizza and pasta originally came from Italy, so people in other countries may be willing to pay more for Italian brands of these products.
Globalisation has enabled the growth of large multinational companies (MNCs). MNCs are businesses that operate in a large number of countries around the world.
Globalisation has also allowed the movement of labour and capital across international borders. The movement of labour means that people are able to go to work and live in another country. This is often restricted to countries that have an agreement in place that gives people the right to move to another country.
The free movement of capital allows businesses and individuals to spend money in other countries as well as hold money in banks in different countries. This provides much more financial freedom.