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