Global Business

Exam Answer
Easy Answer

THE BIG IDEA

“This topic is about how companies grow by selling products or building factories in other countries, why countries trade with each other, and how businesses change their products to fit different cultures around the world.“

CRUCIAL KEYWORDS

Globalisation

The way the whole world is becoming more connected, making it easier to buy and sell things across borders.

Glocalisation

A mix of ‘global’ and ‘local’. Selling the same brand everywhere but changing the product slightly to suit local tastes.

Protectionism

When a government puts taxes or limits on imports to help its own country’s businesses compete.

Multinational Corporation (MNC)

A giant company that has offices, shops, or factories in many different countries.

Trade Bloc

A club of countries that agree to trade with each other easily without extra taxes or rules.

How It Works

1) Bartlett and Ghoshal Matrix

A guide for bosses to decide if they should keep their products the same everywhere to save money, or change them for every country to sell more.

2) Comparative Advantage

The idea that every country should focus on making what they are best at and then swap with others so everyone gets more stuff.

3) Offshoring vs Outsourcing

Offshoring is moving your own office to a cheaper country; outsourcing is paying a different company to do the work for you.

CASE STUDY EVIDENCE

  • McDonald’s changes its menu in different countries so it doesn’t offend local people or ignore what they like to eat.
  • The EU is like one big country for businesses, where they can sell things and move workers around without any border checks.
  • Big companies like Starbucks sometimes get into trouble for trying to avoid paying taxes in the countries where they make a lot of money.

EXAM ESSENTIALS

  • In your answer, talk about both the good things (new jobs) and the bad things (taking profits back home) that big companies bring to a country.
  • Think about the ‘rules of the game’ in a new country. Check their laws, their money, and what people find polite or rude.
  • Remember: Ethnocentric is ‘one size fits all’, Polycentric is ‘each country is unique’, and Geocentric is ‘taking the best ideas from everywhere’.