Globalisation
- Created by: Karris Baker
- Created on: 12-06-15 19:35
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- Globalisation
- benefits
- increased FDI
- faster economic growth
- exploitation of comparative advantage
- economies of scale
- technology transfers
- spread risk
- reduction in trade barriers
- improved communications
- improvements in transport
- increased sales, volumes, revenues
- disadvantages
- environmental cost
- domination of western brands
- tax avoidance from MNCs
- threat of IP theft
- possible diseconomies of scale
- oppurtunities
- expansion overseas - EU, emerging markets
- supply mass consumption e.g. food + drink
- access to new markets/customers
- access to low cost suppliers
- oppurtunities to offshore/outsource production
- low cost production
- impact on strategy
- different consumer tastes
- promotional campaigns + conflicting beliefs/attitudes
- language barriers
- company examples
- JLR/Burberry - luxury goods in China
- Dyson - offshored to malaysia
- GKN - success in china due to adaptation strategy
- GSK + AstraZeneca - manufacturing plants in EU (Ireland, Poland, Sweden) and worldwide (China, Singapore, Mexico)
- JCB - moved close to customers to minimise distribution + transport costs, overcome trade barriers (Brazil, India, Shanghai)
- benefits
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