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Globablisation (Challenges (Governance (Legalities, Regulations), Cultural…
Globablisation
Challenges
Logistics
Cultural barriers
Different motivations
Geographical barriers
More competitors
Governance
Legalities
Regulations
Competing in global
trade environments
Grown from
increase in flow of
labour
goods
money
services
information
technological advances
internet
communication
networks
private
social
Controlled by
institution
World Trade Organisation (WTO)
establishing trade rules
Goals
Ensure flow of trade
Ensure predictability
Provide transaction security
Comparative
advantage
Absolute
Cheapest producer produces
All other customers buy rather than produce
Relative
Where a producer backs the least cost item and specialises in production of that item
Porters Diamond model
Structure of firms and rivalry
Demand conditions
Related and supported industries
Factor conditions (natural resources)
Porters Five forces
of competition model
Suppliers
Substitutes
Buyers
Potential entrants
Industry competitors
Internationalisation
Going global
Interconnecting regions or countries
Collaborating
Values
Ideology
Free movement
Capital
Labour
Less accountability
Organisations competing at cost
Worker relations
Poor practice
Who controls it?
Opportunities
Growth
New markets
New customers