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GLOBILISATION

The impact of globalisation on business

  • Increased competition - this is caused by more foreign investment flowing to countries, de-regulation which allows businesses to enter markets from which they once precluded.
  • Greater awareness and reactions to customer needs - the consumer is now very selective on such essentials as quality, service and price.
  • Economies of scale - by selling across many continents business can acquire economies of large-scale production. This makes them very competitive.
  • Location flexibility - many modern production techniques and service provisions can be allocated almost anywhere. This allows to them gain the advantages of low cost labour and other resource charges.
  • Increased mergers and joint ventures - allowing access to bigger markets and associated cost advantages.

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