1. Business & Management GLOBALISATION “The Growing Integration of the worlds economies."

2. Business & Management What? The process by which the world economy is becoming more integrated (in the past economies were largely self-contained… now they depend much more on each other for inputs and for markets for outputs) The reduction of the difference between one economy and another (Coca- colanisation.)

3. Business & Management Factors contributing to globalisation: Improvement in communications technology

4. Business & Management Transport is much cheaper and faster

5. Business & Management Deregulation of economies – rules and regulations governing business removed (especially rules regarding foreign ownership); privatisation

6. Business & Management Removal of capital exchange controls, i.e. investment in other countries made easily

7. Business & Management Free trade – dismantling of protectionist policies

8. Business & Management Consumer tastes have changed, and consumers are more willing to try foreign products

9. Business & Management Emerging markets in developing countries, especially the ‘Tiger’ economies of SE Asia, in the 90’s, and now India and China. – large consumer markets with increasing amounts of money to spend

10. Business & Management Effects of Globalisation Increased Competition Foreign Competitors Foreign Competitors Deregulation Deregulation New Opportunities New Opportunities

11. Business & Management Meeting Consumer expectations and tastes Increased quality Increased service Reduced price Increased choice

12. Business & Management Economies of scale BuyingLabourProductivitySpecialisationTechnological

13. Business & Management Choice of Location Reduced costs Increased business performance