Flash Card Quiz: Understanding Globalisation and Its Impact

What is globalisation?

• The process of reducing trade barriers between countries

• The integration of economies, cultures, and societies through a global network of trade, communication, and transportation

• The isolation of countries to protect domestic industries

• The increase in localised production and consumption

What is a significant driver of globalisation?

• Increased isolationism

• Advancements in technology

• Higher trade barriers

• Decreased foreign investment

How has technology contributed to globalisation?

• By making international travel more difficult

• By reducing the speed of communication

• By facilitating faster and more efficient communication and transportation

• By increasing the cost of international trade

What is cultural homogeny in the context of globalisation?

• The diversification of cultures worldwide

• The blending and unification of different cultures into a single, global culture

• The preservation of traditional cultures

• The isolation of cultures from one another

Which of the following is an opportunity for UK businesses brought by globalisation?

• Increased competition from foreign companies

• Access to a larger international market

• Higher tariffs on exports

• Limited access to global resources

What is a threat to UK businesses due to globalisation?

• Increased domestic market share

• Reduced competition

• Increased competition from international companies

• Decreased access to international markets

Sebastian is a business owner looking to expand his market reach. Which method of entering international markets involves selling goods directly to another country?

• Licensing

• Exporting

• Franchising

• Joint Ventures

Leo, a toy manufacturer, wants to expand his business internationally. What is licensing in the context of international market entry?

• Establishing a new company in a foreign country

• Allowing a foreign company to produce and sell your product in exchange for a fee or royalty

• Merging with a foreign company

• Selling products directly to consumers in another country

Which of the following is an advantage of franchising as a method of entering international markets?

• Complete control over all operations

• Rapid expansion with lower capital investment

• High risk of brand dilution

• Limited market reach

What is a joint venture?

• A solo business operation in a foreign market

• A partnership between a domestic and a foreign company to share resources and risks

• A method of exporting goods

• A type of licensing agreement