Globalisation

?

What is the difference between offshoring and resh

Offshoring is the practice of basing some of a company's processes or services overseas, so as to take advantage of lower costs whereas reshoring is the practice of transferring a business operation that was moved overseas back to the country from which it was originally relocated

1 of 11

What is a tariff?

A tax or duty to be paid on a particular class of imports or exports.

2 of 11

Define Quotas

A limited quantity of a particular product which under official controls can be produced, exported, or imported.

3 of 11

Define subsidies

A sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low.

4 of 11

What is a trading bloc?

Trading blocs are usually groups of countries in specific regions that manage and promote trade activities. Trading blocs lead to trade liberalisation 

5 of 11

Explain what an MNC is

A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country

6 of 11

What does FDI stand for?

Foreign direct investment (FDI) is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company

7 of 11

What is a TNC?

A commercial enterprise that operates substantial facilities, does business in more than one country and does not consider any particular country its national home

8 of 11

Explain the difference between a BRIC and MINT eco

BRIC economies is a label for Brazil, Russia, India and China that are believed to have promising emerging markets and economies whereas MINT is an acronym for Mexico, Indonesia, Nigeria and Turkey,

9 of 11

Give 3 reasons for offshoring

1) Make use of existing capacity overseas

2) Access better skilled and higher quality supply

3) Take advantage of free trade areas and avoid protectionism 

10 of 11

Give 3 reasons for reshoring

1) Greater certainity surrounding delivery times that are often shorter

2) Cost advantage of producing overseas is not as significant as before as unit labour costs have risen 

3) Minimise the risk of supply chain disruptions

11 of 11

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all 3.7 resources »