1. Identify a globalisation force or forces for an Australian business that might drive them to set up operations overseas. Clearly outline and explain the intended business benefits. Think why a company sets up oversea?
a. expand market for sales and profit?
b. Because they can make cost savings on the cost of products or services – manufacturing cost can be significantly lower – think RM Williams. Customer service and support centres (telcos, banks, technical support) – again a big move these activities offshore a few years ago, but now some companies are bringing them back to Australia – why
2. Explain what makes a country an appropriate host country that is favourable for business with due consideration of its economic, political, and legal environments. What political and legal features make a company desirable. Remember Companies want certainty and stability when they set up overseas – why? Often the type of government doesn’t matter (right wing, left wing, democracy, dictatorship) so long as they can make a desired financial return and be confident that that political and legal landscape is not going to change quickly and badly for them. Consider China and relations with Australia at the moment – not very good. A2 Milk, Mining and agriculture have suffered because of political actions? Political uncertainty can negate expected benefits from point 1.
3. Discuss the importance of technology in supporting globalisation using examples that specifically relate to the country/industry type. Is technology a force or driver of globalisation or an enabler? How is technology effectively used to support globalisation.