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A2: Economic (Political (Regulating:, Enterprise, Environment,…
A2: Economic
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Globalisation
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Reasons for:
- support/ encouragement by Gov/ businesses
- improved communications technology
- lower transportation costs
- reduction in trading barriers
- opportunities for busi to move into new markets
- cheap labour
- cheaper resources
- opportunities of economies of scale
McDonalds - standardise products
- make them available worldwide
- influence gov - make globalisation process more possible
Reasons against:
- economic risks - inflation/ recession
- pressure to reduce prices (maybe profits)
- political risks - developing countries have less stable systems/ gov
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Trade and protectionism
Protectionism = protecting domestic/ home businesses against foreign competition by limiting number of imports into country