Global Business
What is globalisation?
The increasing interconnectedness of countries through trade, communication, and technology.
What is an FTA?
An agreement between countries to reduce trade barriers.
What is a global strategic alliance?
An agreement between businesses to work together internationally.
What is e-commerce?
Buying and selling goods/services online.
What is an export risk?
A potential problem when selling goods overseas.
What is one reason businesses expand globally?
To increase profits or access new markets.
Name one Australian FTA.
AANZFTA or ANZCERTA.
What is outsourcing?
Hiring another company to perform business functions.
What is B2C?
Business selling directly to consumers.
What is a corporate slogan?
A short phrase representing a brand.
What is the difference between domestic and global business?
Domestic operates within one country; global operates across multiple countries.
What is one benefit of FTAs for businesses?
Reduced tariffs leading to lower costs.
What is a joint venture?
Two businesses creating a new business together.
What is one advantage of e-commerce?
Global reach or lower costs.
What does “standardisation” mean in global marketing?
Using the same product/marketing across countries.
What is one challenge of global expansion?
Cultural differences or legal regulations.
What is one challenge of FTAs?
Increased competition from international businesses.
State one benefit of alliances.
Shared risk or access to expertise.
What is one disadvantage of e-commerce?
Security risks or lack of physical interaction.
How do FTAs benefit Australian exporters?
Lower costs and increased market access.
Explain one factor driving global business development.
Financial growth opportunities, cost reduction, access to resources, or diversification of risk.
Explain the role of FTAs in global trade.
They promote trade by reducing barriers, increasing market access, and encouraging economic cooperation.
Explain one risk of global alliances.
Loss of control, conflict between partners, or cultural differences.
Explain how e-commerce supports global expansion.
It removes geographic barriers and allows businesses to sell internationally without physical stores.
Explain when a business should standardise vs adapt.
Standardise for cost efficiency and brand consistency; adapt for cultural differences and market needs.