Globalization and Its Business Impacts

The video discusses globalization, the process of countries becoming interconnected through trade and labor movement. It explores the impact on businesses, highlighting the pros such as access to larger markets and cheaper resources, and cons like increased competition and ethical concerns. The video also examines how globalization affects small and large businesses differently, emphasizing the advantages for multinational corporations.

What is a key characteristic of globalization?

• Interconnection of countries

• Isolation of countries

• Decrease in international trade

• Reduction in labor movement

Which of the following is a result of globalization for businesses?

• Uniform marketing strategies

• Increased use of e-commerce

• Decreased use of technology

• Limited international trade

How does globalization benefit businesses in terms of raw materials?

• Increases the cost of raw materials

• Reduces the variety of raw materials

• Limits access to raw materials

• Provides access to cheaper raw materials

What is a potential disadvantage of globalization for domestic businesses?

• Stable exchange rates

• Increased competition from abroad

• Higher domestic sales

• Decreased competition

How can exchange rates affect businesses in a globalized market?

• They have no impact

• They stabilize revenue

• They can make products less price competitive

• They make exports cheaper

What ethical concern might arise from outsourcing in globalization?

• Increased domestic employment

• Becoming more unethical

• Improved company reputation

• Higher production costs

Why might large businesses benefit more from globalization?

• They have fewer resources

• They can exploit globalization benefits

• They have limited market access

• They face more competition

What is a characteristic of multinational corporations?

• They operate only in their home country

• They have no international revenue

• They earn a significant portion of revenue abroad

• They avoid globalization

How does globalization affect small businesses differently than large ones?

• Small businesses have limited resources to exploit globalization

• Small businesses can easily exploit globalization

• Globalization has no impact on business size

• Large businesses struggle with globalization

What is a major benefit of globalization for smaller businesses?

• Access to a smaller target market

• Increased isolation

• Access to a larger target market

• Higher production costs