applied business- global market impact on the business

applied business- global market impact on the business

Causes

  • access to a larger market.
  • economies of scale
  • increased profitability

Effects

  • can export goods to other countries, this gives the business a larger customer base and access to larger profit.
  • if selling in larger quantities then it should be able to take advantage of 4 economies of scale (financial, marketing,technical &managerial)
  • this access to a larger market means they should be able to sell more goods as a result it should increase sales and higher profit.

Overall summary

this has a large impact on businesses as if a business does not trade globally then they will be left behind and will not access the points listed above.

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