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A short class with Sarah and her students. The other ways are under More.
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Today, we will discuss the positive effects of market expansion due to globalisation. Can anyone tell me how globalisation has helped businesses to grow?
I think it helps them reach customers in other countries.
Exactly! This access to international customers can significantly boost sales and profits. We can remember this as the 'ACE'—Access to Customers Everywhere! Can anyone think of examples of companies that have benefited from this?
Apple and McDonald's sell their products worldwide!
Right! Their global presence exemplifies how companies leverage market expansion. But what about the impact on quality and efficiency?
Isn’t competition a factor that pushes companies to improve their products?
Absolutely, competitive pressure drives innovation. This leads us to our final point for today, the cultural exchange that comes with globalisation. Can anyone provide an example of cultural exchange?
Like how people enjoy sushi not just in Japan but all over the world?
That's a perfect example! To summarize, we covered how globalisation allows access to international markets, boosts quality through competition, and facilitates cultural exchanges.
Now, let's discuss the challenges that come with market expansion through globalisation. What concerns might local businesses have?
They might struggle to compete against big global companies.
Correct, this is a significant concern. We often see smaller businesses struggle to survive. Let's remember this with the acronym 'THREAT'—Small businesses face a Threat from Huge Entities Always Trying. What about economic inequality?
Isn't it that richer countries get richer while poorer ones lag behind?
Exactly! This disparity affects global dynamics. And regarding labor, what risks exist?
Some companies might ignore labor laws to reduce costs.
Spot on! And lastly, we must consider cultural erosion. What can you tell me about that?
Some places might lose their local culture due to global brands.
Precisely! To summarize, we learned that while globalisation has its benefits, it also poses significant challenges such as threats to local businesses, economic inequality, possible labor exploitation, and cultural erosion.
Global trade helps businesses thrive, reaching markets, they come alive!
Once upon a time, small businesses thrived in their towns, until big corporations came from far away, like the giants of the land. They offered lower prices and better products, overshadowing the local shops. The townsfolk learned to adapt, blending their traditions with new global flavors, creating a rich tapestry of culture.
Remember MAE: Market Access Everywhere for globalisation!
THREAT for challenges: Threat to local Hubs, Economic disparity, Risks of exploitation, Erosion of culture, Additional concerns, Try adapting!
Term
What is market expansion?
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Term
What are Multinational Corporations?
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Define cultural erosion.
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The process of integration and interaction among people, companies, and governments worldwide, particularly in trade and cultural exchange.
Companies that operate in multiple countries, often promoting integration through investments and efficient practices.
The diminishing of local cultures and traditions due to the influence and dominance of global brands and ideas.
The unequal distribution of wealth and resources between countries, leading to disparities in development.
The expansion of markets due to globalisation allows businesses to reach international customers and compete globally.
This section explores the implications of globalisation on market expansion, highlighting its positive impacts such as increased sales, competition, and cultural exchange while also addressing the challenges faced by local industries and wealth inequality.
Globalisation has fundamentally altered the business landscape by providing unprecedented access to international markets. This phenomenon allows companies not only to increase sales but also to innovate and improve efficiency in response to global competition.
Positive Effects:
Challenges:
The expansion of markets through globalisation presents a dual narrative—it offers tremendous opportunities for businesses to thrive, while simultaneously spotlighting the need to address the challenges posed to local industries and economies.