Reasons for Global Growth
What is one financial reason businesses seek to grow globally?
Access to new markets and potential for higher profits.
How has online shopping affected consumer access to international markets?
It provides access to a larger variety of products from different countries, increasing consumer choice.
What is a key requirement of free trade agreements under WTO rules?
Elimination of tariffs and trade restrictions among member countries.
What is one effect of deregulating the financial market on international business?
It allows for easier access to international capital markets and investments.
How can Australian companies reduce costs through globalisation?
By sourcing materials and production from countries with lower costs.
What role does social media play in global consumer purchasing?
It allows consumers to share product reviews and experiences, helping businesses build brand awareness globally.
How does the WTO aim to simplify global trade?
By simplifying customs procedures and reducing trade barriers.
How does deregulation impact bank lending?
It increases the availability of loans for businesses seeking to expand globally.
Why might profit margins encourage an Australian company to manufacture overseas?
They can increase profit margins by producing goods at a lower cost in other countries.
How do digital products facilitate international growth?
Digital products can be easily distributed worldwide, reducing shipping costs and logistical challenges.
What does the WTO do to ensure transparency in global trade?
The WTO provides clear rules and regulations regarding trade practices.
In what way does increased competition in the financial industry benefit companies?
Companies benefit from competitive interest rates and better financial services.
What financial position helps a business to consider going global?
A strong financial position, including low debt and high cash reserves, allows for investment in global expansion.
What factors contribute to increased online shopping satisfaction?
Factors include ease of online payment, greater product selection, and improved website user experience.
How do WTO standards help in resolving trade disputes?
They help maintain fair trading practices and resolve conflicts between countries.
How can deregulation facilitate foreign investment?
It encourages foreign investors to enter the market, increasing capital flow.
How do seasonal differences impact global sales growth opportunities?
Companies can counteract seasonal fluctuations in demand by accessing international markets.
How do secure payment systems influence global consumer behaviour?
Secure payment systems enhance consumer trust and facilitate international transactions.
What is the importance of centralised databases in global trade according to the WTO?
They provide reliable trade information that businesses can use to make informed decisions.
What barriers are removed through financial market deregulation?
Barriers such as restrictive foreign investment regulations and limits on bank operations are removed.