The Importance of Globalisation | Business Studies for GCSE/IGCSE - Year 11 PDF Download

An Introduction to Globalisation

• Globalization denotes the economic amalgamation of diverse nations, facilitated by heightened freedoms in the cross-border movement of people, goods/services, technology, and finance.
• The past two decades have witnessed rapid globalization and a notable surge in international business expansion.
• Businesses engaged in international trade partake in the import and export of goods and services.
• Imports refer to goods and services purchased by individuals and businesses in one country from another.
  • In 2022, the most significant import for the UK was cars, valued at around £3.25 billion.
• Exports represent goods and services sold by domestic enterprises to individuals or businesses in foreign nations.
  • In 2022, China's leading export was smartphone manufacturing, valued at approximately $21.4 billion.
• Exporting enables businesses to accrue additional sales revenue by marketing their goods overseas.
• Imports entail funds exiting the country, thereby generating supplementary revenue for foreign businesses.

Reasons for Globalization

The world is evolving from national markets to form a single extensive market. 

• This shift is enabling products from global brands to be accessible in numerous countries.
• Workers now have enhanced mobility, allowing them to transition between different countries with considerable ease.
• Financial transactions are swiftly traversing borders due to technological advancements, facilitating instant transfers across the globe.

Key Reasons for Increased Globalisation

The Opportunities & Threats of Globalisation

• Globalisation presents advantageous prospects for companies, fostering positive impacts across entire industries.

Business Opportunities as a Result of Globalisation

• Globalisation also poses threats to businesses and industries, introducing fresh competitive and operational hurdles.

Business Threats Arising from Globalisation