Globalisation - Globalisation: a global village?

4 important questions on Globalisation - Globalisation: a global village?

What is the globalisation of physical space?

The compression of the world in terms of physical geography. This was brought about by colonialism. Borders between nation states are diminishing. Supra-natural entities such as the EU and WTO have control over the movement of goods across borders.

What are overseas investment and expansion?

Overseas investment is when a company sets up a premises in an area from which it can receive considerable business. Examples are sales offices to generate exports or after-sales service centres.

Foreign direct investment is when a company sets up a production plant in an overseas territory directly.

What are mergers, acquisitions and joint ventures?

Expanding operations by buying (acquiring) overseas businesses, e.g. A similar business or one that is at another point in the production chain of the product your business is manufacturing.

Mergers can occur to enable companies to achieve economies of scale.

Joint ventures are when organisations co-operate with each other without merging.
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What are franchising and licensing?

Franchising is where a company allows another organisation to operate its business on its behalf using its brand and products.

Licensing is where a company grants the right to produce its good and sell it under its brand in another territory.

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