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Global business environment


  •   To understand globalisation, and how the forces sustaining it impact on a firm's production, sourcing and investment decisions and ultimately its profitable existence.

    Outline Syllabus

    • The extent to which the world economy is truly global. Define globalisation in terms of the economic interdependence of nation state economies.  
    • What has brought about this globalising world and who are the business winners and losers. Why would any country engage in such a world?  Why would business want to engage?
    • Highlight how firms have responded to globalisation in terms of their decisions on:

                    which product and geographical markets to enter

                    the price they can charge for their products

                    whether to invest in physical assets at home or overseas or both

                    what products to make themselves and what products to buy in from external suppliers

                    how to improve firm competitiveness

    • Discuss how volatile exchange rates affect international business and a firm's response.

     Learning outcomes

     Understand and critically assess how:

    • globalised world markets for goods and services have become
    •  an increasingly globalised world has come about
    • the commercial decisions of a business in one country are influenced by the actions of businesses in another country
    • globalisation impacts on the firms decision as to which markets (product and geography) it should sell into
    • globalisation impacts on a firm's decision as to what price it should set for its products
    • globalisation impacts on a firm's decision on where and what to source from suppliers
    • trade and investment liberalisation around the countries of the world impacts on a firm's decision whether or not to invest in new physical capital and workers in over seas markets
    • increased competition affects a firm's decisions on what to make themselves or buy in from external suppliers
    • firms' options are of either beating the competition or avoiding them