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Unit 4: Global Business

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  1. 4.3.1 - Globalisation

    1. Compare developed, developing and emerging economies.

    2. Explain the growing economic power of countries in Asia, Africa and other regions.

    3. Analyse implications of economic growth for individuals and businesses, including trade opportunities and employment patterns.

    4. Use GDP, GDP per capita and HDI as growth indicators.

    5. Explain exports and imports.

    6. Analyse implications of increasing specialisation by countries and businesses.

    7. Explain foreign direct investment and its link to business growth.

    8. Explain trade liberalisation, reduced trade barriers and the role of the WTO.

    9. Explain political change as a contributor to globalisation.

    10. Explain reduced transport and communication costs as contributors to globalisation.

    11. Explain the increased significance of global multinational corporations.

    12. Explain increased FDI flows as a contributor to globalisation.

    13. Explain migration within and between economies as a contributor to globalisation.

    14. Explain growth of the global labour force.

    15. Explain structural change as a contributor to globalisation.

    16. Analyse the impact of increased globalisation on businesses.

    17. Explain reasons for protectionism.

    18. Explain tariffs as a protectionist measure.

    19. Explain import quotas as a protectionist measure.

    20. Explain government legislation and domestic subsidies as trade barriers.

    21. Analyse the impact of protectionism on businesses.

    22. Explain expansion of trading blocs, including the EU single market, ASEAN and NAFTA.

    23. Analyse the impact of trading blocs on businesses.

  2. 4.3.2 - Global markets and business expansion

    1. 4.3.2.1aPush factors

      Explain push factors such as saturated markets and competition.

    2. 4.3.2.1bPull factors

      Explain pull factors such as increased sales, profitability, risk spreading and economies of scale.

    3. 4.3.2.1cOffshoring and outsourcing

      Analyse cost competitiveness from offshoring and outsourcing.

    4. 4.3.2.1dProduct life cycle extension

      Explain extending the product life cycle through international trade.

    5. 4.3.2.2aCountry as market factors

      Assess market attractiveness using disposable income, ease of doing business, infrastructure, political stability and exchange rates.

    6. 4.3.2.2bPorter five forces for markets

      Apply Porter five forces to assessing potential markets.

    7. 4.3.2.3aCountry as production location

      Assess production locations using production costs, labour skills and availability, infrastructure, trade bloc location, incentives, ease of doing business, political stability, natural resources and likely return on investment.

    8. 4.3.2.4aRisk spreading and economies of scale

      Explain risk spreading and economies of scale as reasons for global mergers, takeovers or joint ventures.

    9. 4.3.2.4bEntering markets and blocs

      Explain entering new markets or trade blocs as a reason for global expansion deals.

    10. 4.3.2.4cBrand names and patents

      Explain acquiring national or international brand names and patents.

    11. 4.3.2.4dSecuring resources

      Explain securing resources and supplies.

    12. 4.3.2.4eGlobal competitiveness

      Explain maintaining or increasing global competitiveness.

    13. 4.3.2.4fReducing competition

      Explain reducing competition.

    14. 4.3.2.4gLocal knowledge

      Explain making use of local knowledge.

    15. 4.3.2.4hLegal requirements

      Explain government or legal requirements.

    16. 4.3.2.4iSupply chains and distribution

      Explain accessing supply chains and distribution networks.

    17. 4.3.2.4jSharing costs and risks

      Explain sharing costs and risks.

    18. 4.3.2.5aExchange rates and global expansion

      Analyse the impact of exchange rate movements on businesses.

    19. 4.3.2.5bSkill shortages

      Analyse skill shortages and their impact on international competitiveness.

  3. 4.3.3 - Global marketing

    1. Explain global marketing strategy and global localisation.

    2. Compare domestic or ethnocentric, mixed or geocentric, and international or polycentric approaches.

    3. Apply and adapt the marketing mix to global markets.

    4. Apply Ansoff Matrix and Porter Matrix to global marketing decisions.

    5. Recognise that groups around the world have different interests and values.

    6. Explain features of global niche markets.

    7. Apply and adapt the marketing mix to suit global niches.

    8. Analyse cultural differences, tastes and preferences, language issues, unintended meanings, inappropriate branding and inappropriate promotion.

  4. 4.3.4 - Global industries and companies

    1. Analyse MNC impacts on local labour, wages, working conditions, job creation, local businesses, local communities and the environment.

    2. Analyse MNC impacts on economic growth, FDI flows, balance of payments, technology transfer, skills transfer, consumers, business culture and tax revenues.

    3. Analyse stakeholder conflicts in international business ethics.

    4. Evaluate emissions, waste disposal and sustainability.

    5. Evaluate pay, working conditions, labour exploitation and child labour.

    6. Evaluate misleading product labelling and inappropriate marketing activities.

    7. Evaluate control of MNCs through MNC power, political influence, legal control, consumer pressure, pressure groups, social media and self-regulation.