WBS14 Global business

Lessons in WBS14

1. Developed, developing and emerging economies
   Developed: high income, service-based. Developing: low income, agriculture-based. Emerging: fast growth, industrialising, growing middle class. Growth in Asia a
2. Indicators of growth: GDP, GDP per capita and HDI
   Growth rate = change in real GDP / original GDP x 100. GDP per capita = GDP / population. HDI combines health, education and income (0 to 1). Each indicator is
3. Exports, imports and specialisation
   Exports bring money in, imports send money out; balance of trade = exports - imports. Specialisation raises efficiency and scale but increases dependence and su
4. Foreign direct investment and business growth
   FDI: investment abroad with lasting control (greenfield, acquisition, joint venture). It drives business growth by market access, lower costs, resources, scale
5. Why globalisation increased: trade liberalisation, politics and technology
   Trade liberalisation (cutting tariffs and quotas, led by the WTO since 1995, 166 members), political change (China, the former Soviet bloc, India) and cheaper t
6. Why globalisation increased: MNCs, investment, migration and structural change
   MNCs, rising FDI, migration, a much larger global labour force and structural change all deepened globalisation. For businesses it brings bigger markets and che
7. Protectionism: reasons and tariffs
   Reasons: jobs, infant and strategic industries, dumping, balance of payments, revenue, retaliation. A tariff raises the import price, helps domestic producers,
8. Protectionism: quotas, legislation, subsidies and the impact on business
   Quotas limit import quantity (no revenue unless licences are sold). Legislation (standards, rules) and subsidies (lower domestic costs) also protect. Protection
9. Trading blocs: the EU, ASEAN and NAFTA
   Free trade area < customs union (CET) < single market (four freedoms) < monetary union. EU single market: 27 members plus the EEA. ASEAN: 11 members since Octob
10. Conditions that prompt trade: push and pull factors
    Push: saturated home markets, competition. Pull: sales and profit growth, risk spreading, economies of scale. Off-shoring and outsourcing improve cost competiti
11. Assessing a country as a market
    Assess a market by disposable income levels and growth, ease of doing business, infrastructure, political stability and exchange rates. Porter's five forces (ri
12. Assessing a country as a production location
    Weigh costs, labour skills and availability, infrastructure, trade bloc access, incentives, ease of doing business, political stability, natural resources and R
13. Reasons for global mergers, takeovers and joint ventures
    Merger = combine; takeover = buy control; joint venture = new jointly owned business. Reasons: risk and scale, new markets and blocs, brands and patents, resour
14. Global expansion and uncertainty: exchange rates
    Multiply to convert into the currency on the right, divide to convert back. Strong home currency: imports cheap, exports dear, overseas profits worth less. The
15. Global expansion and uncertainty: skills shortages
    Skills shortages push up wages, cut productivity, quality and innovation, delay projects and reduce international competitiveness. Firms respond with training,
16. Global marketing strategy, glocalisation and marketing approaches
    Global strategy: standardise for scale. Glocalisation: global brand, local adaptations. Ethnocentric = home mix everywhere; polycentric = different mix for each
17. Adapting the marketing mix (4Ps) for global markets
    Product: adapt for tastes, culture, laws, standards, incomes. Price: incomes, competition, PED, tariffs, exchange rates. Place: channels, infrastructure, e-comm
18. Ansoff's matrix and Porter's generic strategies in global markets
    Ansoff: penetration (low risk), market development (existing product, new country), product development, diversification (highest risk). Porter: cost leadership
19. Global niche markets
    Global niches: small, specialised segments spread across countries, linked to cultural diversity. Features: loyal, less price-sensitive customers, higher margin
20. Cultural and social factors in global marketing
    Consider cultural differences (values, religion, symbols, etiquette), tastes and preferences, language and unintended meanings, and inappropriate branding or pr
21. The impact of MNCs on the local economy
    Local effects of MNCs: jobs, wages, skills and supplier demand, versus low-skill jobs, poor conditions, competition that harms local firms, pollution and conges
22. The impact of MNCs on the national economy
    National effects: growth, FDI inflows, exports (but profit repatriation), technology and skills transfer, consumer choice, new business culture and tax revenue
23. International business ethics: stakeholder conflicts and the environment
    Stakeholder conflicts: profit versus pay, low prices versus sustainability, jobs versus environment. Environmental issues: emissions, waste disposal and sustain
24. International business ethics: supply chains and marketing
    Supply chain ethics: pay, safety, exploitation and child labour (138 million children in 2024, ILO/UNICEF). Rana Plaza (2013) led to a legally binding safety ac
25. Controlling MNCs
    MNCs are hard to control because of their power and political influence. Controls: legal (competition, labour, environmental, tax law), consumer pressure, press
26. Unit 4 exam technique
    80 marks in 2 hours: Section A 40 marks, two 20-mark essays. Show formulas and units in calculations. Apply every answer to the context. 12-mark Assess needs a

Next exams for WBS14

• January 2027: Thu 21 Jan 2027, morning, 2h 00m
• Summer 2027: Tue 1 Jun 2027, morning, 2h 00m

From Pearson's final timetables. All exam dates. Always confirm your entries with your exams officer.