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Finance - Unit 3, topic 7 (Globalisation (Globalisation = businesses…
Finance - Unit 3, topic 7
The collective effect is when a large number of customers choose to buy products/services from a certain company, which increases the demand for that company's product/service
Ethics
Normally,behaving ethically increases business costs, however a business can lose sales if their customer chooses a low priced product over an ethically made product (PRICE V.S ETHICS)
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Globalisation
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Advantages:
- consumers have more choice on where they would like to buy from
- businesses can reduce their prices to sell more products, which will benefit the consumer
- jobs are created in developing countries
Disadvantages:
- low wages for workers in developing countries
- poor conditions and health/safety for workers
- profits made do not go towards local communities
- more workers in developing countries will decrease employment in developed countries
Location of businesses
Out of town shopping, which is becoming increasingly popular, isn't ideal low-income families or older people
Out of town shopping has a negative effect on the environment (e.g release of gases, high energy consumption)
When a business closes down, the businesses it brought from will lose sales and also close down, leading to economic turndown
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Contracts
People work part-time because:
- they are developing a business idea
- they are old and cannot work full-time
- aren't earning enough in their main job
- have young children
During a downturn, employers may ask employees
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