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Chapter 8.1 The Global Consumer (Sourcing Products Internationally…
Chapter 8.1 The Global Consumer
Sourcing Products Internationally
Our world is not limited by national borders; it is connected
Australia, and many other countries, buy and sell products on the world market
Globalisation is the movement across nations of people, goods, money and ideas
Globalisation, including trade, exploration, and the movement of people and ideas globally has occurred over centuries
The world has experienced rapid and broad globalisation in the last twenty to sixty years
Globalisation is not always a good thing. Some believe the process of globalisation is a 'race to the bottom' in wages and conditions of work.
Exploitation (majorly in developing countries), and loss of jobs (particularly in developed countries) have been the results of globalisation
Trends Towards a Global Market
International (global) trade is the buying and selling of goods and services between nations
The Earth is linked through international trade
The global consumer is now able to shop in a global marketplace
Modern mass communication technologies, especially the internet, provides access to shopping sites, long-distance communication and information at the ready
The Relationship Between Domestic and International Trade
Domestic trade: economic transactions that take place within Australia
International trade: economic transactions that take place across the globe, with less limitations
The two are linked with businesses and consumers who rely on the ability to purchase a range of goods and services from overseas
These days, the use of imports (goods and services bought from another country) and exports (goods and services sold to another country) are prevalent
Australia is linked to the world economy through the flow of imports and exports
E-commerce
Definition: the buying and selling of information, goods and services via the internet
E-commerce is a tool used by many for purchasing products from overseas
E-commerce and globalisation provide a larger audience for all business looking to expand, and open up new pathways for new businesses and ideas
The internet increases the range of products available, increasing choice. This is both beneficial for the consumer and the provider
Amazon.com
One of the most successful online stores
Annual sales of $51.4 billion
65 million global customers per month
E-commerce allows their success due to a computerised operating system - allows customers to browse thousands of product lines with quick delivery
US website
The computer platform offers a personalised shopping experience for the global consumer
Data centres, warehouses and distribution centres deliver to millions of global customers annually
The Global Consumer
Sunglasses: Italy
Shirt: France
Watch: South Korea
Mobile Phone: Sweden
Socks: China
The increase of globalisation has given the world new connections which allow consumers from all around the world to purchase products without the limitation of borders and inconvenience