What is a multinational company?

A multinational company has its headquarters in one country and operates in several others. Multinationals often produce where costs are lowest.

What are the benefits of globalisation for UK businesses?

UK businesses can sell to far larger markets overseas. UK businesses can also buy cheaper supplies and move production abroad.

What are the drawbacks of globalisation for UK businesses?

UK businesses face more competition from foreign firms, often with lower costs. Some UK firms lose sales or close as a result.

How can UK businesses compete internationally through better design?

Distinctive, well-designed products stand out and can command higher prices. Customers abroad may pay more for a stylish or innovative product.

AQA GCSE Business 8132

Business in the Real World

Topic overview What a business is and why people start one Goods, services, needs, wants and factors of production Business sectors, entrepreneurs and a changing business environment Sole traders, partnerships, limited companies and not-for-profit organisations Business aims and objectives Why business objectives differ and change Stakeholders and their influence on businesses Factors affecting business location Business planning and basic financial terms Expanding a business and economies of scale

Influences on Business

Topic overview E-commerce and digital communication Ethics, the environment and sustainability Interest rates, employment and consumer spending Globalisation and exchange rates Employment, health and safety and consumer law Competition, risk and uncertainty

Business Operations

Topic overview Job, flow and lean production Managing stock: just in time and just in case Suppliers, procurement, logistics and supply chains Quality control, quality assurance and TQM Customer service and the sales process

Human Resources

Topic overview Organisational structures, span of control and delegation Recruitment, selection and contracts of employment Financial and non-financial methods of motivation Induction, on-the-job and off-the-job training

Marketing

Topic overview Identifying and satisfying customer needs Market segmentation Purpose of market research and primary and secondary research Market research methods and interpreting findings Pricing methods and factors affecting price New products, USP, brand image and the Boston Matrix Product life cycle and extension strategies Promotional methods and the promotional mix Channels of distribution, e-commerce and m-commerce The integrated marketing mix

Finance

Topic overview Sources of finance Cash flow and cash flow forecasts Financial calculations and average rate of return Break-even charts and margin of safety Income statements and statements of financial position Profit margins and judging financial performance

Influences on Business

Globalisation and exchange rates

3 things to know
Both papers

Overview

Globalisation, imports, exports and multinationals, competing through design and quality, producing overseas, exchange rates and SPICED, and how a strong or weak pound affects exporters and importers.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

What is globalisation, and what are imports and exports?

Key term

What is globalisation?

Key term

What are imports and exports?

Questions from this subtopic

Each one with the model answer underneath.

1
What is globalisation?
Model answer
Globalisation is the growing links between countries through trade, investment and communication. Businesses increasingly sell to and buy from other countries.
2
What are imports and exports?
Model answer
Imports are goods and services bought from other countries. Exports are goods and services sold to other countries.
3
What is a multinational company?
Model answer
A multinational company has its headquarters in one country and operates in several others. Multinationals often produce where costs are lowest.
4
What are the benefits of globalisation for UK businesses?
Model answer
UK businesses can sell to far larger markets overseas. UK businesses can also buy cheaper supplies and move production abroad.
5
What are the drawbacks of globalisation for UK businesses?
Model answer
UK businesses face more competition from foreign firms, often with lower costs. Some UK firms lose sales or close as a result.
6
How can UK businesses compete internationally through better design?
Model answer
Distinctive, well-designed products stand out and can command higher prices. Customers abroad may pay more for a stylish or innovative product.

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Business in the Real World

Influences on Business

Business Operations

Human Resources

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The pays a fee and a share of revenue.

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AThe business pays more interest on the money it owes.

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