Unit 4: Global Business
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4.3.1 - Globalisation
4.3.1.1aEconomy characteristics
Compare developed, developing and emerging economies.
4.3.1.1bGrowing economic power
Explain the growing economic power of countries in Asia, Africa and other regions.
4.3.1.1cGrowth implications
Analyse implications of economic growth for individuals and businesses, including trade opportunities and employment patterns.
4.3.1.1dGrowth indicators
Use GDP, GDP per capita and HDI as growth indicators.
4.3.1.2aExports and imports
Explain exports and imports.
4.3.1.2bSpecialisation
Analyse implications of increasing specialisation by countries and businesses.
4.3.1.2cForeign direct investment
Explain foreign direct investment and its link to business growth.
4.3.1.3aTrade liberalisation and WTO
Explain trade liberalisation, reduced trade barriers and the role of the WTO.
4.3.1.3bPolitical change
Explain political change as a contributor to globalisation.
4.3.1.3cTransport and communication costs
Explain reduced transport and communication costs as contributors to globalisation.
4.3.1.3dMultinational corporations
Explain the increased significance of global multinational corporations.
4.3.1.3eInvestment flows
Explain increased FDI flows as a contributor to globalisation.
4.3.1.3fMigration
Explain migration within and between economies as a contributor to globalisation.
4.3.1.3gGlobal labour force
Explain growth of the global labour force.
4.3.1.3hStructural change
Explain structural change as a contributor to globalisation.
4.3.1.3iBusiness impact of globalisation
Analyse the impact of increased globalisation on businesses.
4.3.1.4aReasons for protectionism
Explain reasons for protectionism.
4.3.1.4bTariffs
Explain tariffs as a protectionist measure.
4.3.1.4cImport quotas
Explain import quotas as a protectionist measure.
4.3.1.4dOther trade barriers
Explain government legislation and domestic subsidies as trade barriers.
4.3.1.4eProtectionism and business
Analyse the impact of protectionism on businesses.
4.3.1.5aTrading bloc expansion
Explain expansion of trading blocs, including the EU single market, ASEAN and NAFTA.
4.3.1.5bTrading blocs and business
Analyse the impact of trading blocs on businesses.
4.3.2 - Global markets and business expansion
4.3.2.1aPush factors
Explain push factors such as saturated markets and competition.
4.3.2.1bPull factors
Explain pull factors such as increased sales, profitability, risk spreading and economies of scale.
4.3.2.1cOffshoring and outsourcing
Analyse cost competitiveness from offshoring and outsourcing.
4.3.2.1dProduct life cycle extension
Explain extending the product life cycle through international trade.
4.3.2.2aCountry as market factors
Assess market attractiveness using disposable income, ease of doing business, infrastructure, political stability and exchange rates.
4.3.2.2bPorter five forces for markets
Apply Porter five forces to assessing potential markets.
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.
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.
4.3.2.4bEntering markets and blocs
Explain entering new markets or trade blocs as a reason for global expansion deals.
4.3.2.4cBrand names and patents
Explain acquiring national or international brand names and patents.
4.3.2.4dSecuring resources
Explain securing resources and supplies.
4.3.2.4eGlobal competitiveness
Explain maintaining or increasing global competitiveness.
4.3.2.4fReducing competition
Explain reducing competition.
4.3.2.4gLocal knowledge
Explain making use of local knowledge.
4.3.2.4hLegal requirements
Explain government or legal requirements.
4.3.2.4iSupply chains and distribution
Explain accessing supply chains and distribution networks.
4.3.2.4jSharing costs and risks
Explain sharing costs and risks.
4.3.2.5aExchange rates and global expansion
Analyse the impact of exchange rate movements on businesses.
4.3.2.5bSkill shortages
Analyse skill shortages and their impact on international competitiveness.
4.3.3 - Global marketing
4.3.3.1aGlobal marketing and glocalisation
Explain global marketing strategy and global localisation.
4.3.3.1bMarketing approaches
Compare domestic or ethnocentric, mixed or geocentric, and international or polycentric approaches.
4.3.3.1cMarketing mix adaptation
Apply and adapt the marketing mix to global markets.
4.3.3.1dStrategy matrices in global marketing
Apply Ansoff Matrix and Porter Matrix to global marketing decisions.
4.3.3.2aCultural diversity
Recognise that groups around the world have different interests and values.
4.3.3.2bGlobal niche markets
Explain features of global niche markets.
4.3.3.2cMarketing mix for global niches
Apply and adapt the marketing mix to suit global niches.
4.3.3.3aCultural and social considerations
Analyse cultural differences, tastes and preferences, language issues, unintended meanings, inappropriate branding and inappropriate promotion.
4.3.4 - Global industries and companies
4.3.4.1aMNC impact on local economy
Analyse MNC impacts on local labour, wages, working conditions, job creation, local businesses, local communities and the environment.
4.3.4.1bMNC impact on national economy
Analyse MNC impacts on economic growth, FDI flows, balance of payments, technology transfer, skills transfer, consumers, business culture and tax revenues.
4.3.4.2aStakeholder conflicts
Analyse stakeholder conflicts in international business ethics.
4.3.4.2bEnvironmental considerations
Evaluate emissions, waste disposal and sustainability.
4.3.4.2cSupply chain considerations
Evaluate pay, working conditions, labour exploitation and child labour.
4.3.4.2dMarketing considerations
Evaluate misleading product labelling and inappropriate marketing activities.
4.3.4.3aControlling MNCs
Evaluate control of MNCs through MNC power, political influence, legal control, consumer pressure, pressure groups, social media and self-regulation.