Exam Preparation (Business Studies)

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Exam Preparation (Business Studies) by Mind Map: Exam Preparation (Business Studies)

1. Globalisation

1.1. Definition: Growing combination of the world's economies. (The world becomes more interconnected using trade)

1.1.1. Essays / Articles

1.1.2. Books

1.2. Reasons for globalisation

1.2.1. Developments in technology

1.2.2. Improvement of international transport network

1.2.3. Increase of deregulation

1.2.4. Increase in tourism

1.2.5. Many firms want to sell abroad

1.3. Government and Globalisation

1.3.1. Cannot trade if government keeps international borders closed.

1.3.2. Limited international trade if governents impose trade barriers

1.3.3. People cannot be free to live in other countries if borders are closed

1.3.4. Firms cannot sell products overseas if permission is denied

1.4. Opportunities of globalisation

1.4.1. Access to larger markets

1.4.2. Lower businesses production costs

1.4.3. Access to a global workforce

1.4.4. Reduced taxation

1.5. Threats

1.5.1. Higher competition

1.5.2. Business takeovers

1.5.3. Increased risk of external shock

2. Multinationals

2.1. Drawbacks

2.1.1. Environmental damage

2.1.2. Exploitation of less developed countries

2.1.3. Profits have to be sent to the host country

2.1.4. Lack of accountability

2.2. Benefits of multinationals (to a country)

2.2.1. Increase in income

2.2.2. Increase in country employment rates

2.2.3. Increase in tax revenue

2.2.4. Increase in exports

2.2.5. Transfer of technology

2.2.6. Improvement in quality of human employment

2.2.7. Enterprise development

2.3. Benefits of becoming a multinational (to a business)

2.3.1. Larger customer base

2.3.2. Lower costs

2.3.3. Higher profile

2.3.4. Avoiding trade barriers

2.3.5. Lower taxes

2.4. How have multinationals developed?

2.4.1. Economies of scale

2.4.2. Marketing

2.4.3. Technical security

2.4.4. Financial security