BSB119 Study Guide - Final Guide: Foreign Exchange Risk, Comparative Advantage, Free-Trade Area
Document Summary
Globalisation- the merging of national economies into an interdependent, integrated global economic system. Firms can expand revenue by selling around the world. Reduce costs by producing goods where resources are cheap. Example ikea buying parts and furniture from all over the world in order to maintain the lowest price. Offshoring- a form of outsourcing it is when a task previously performed in one country is now conducted in another country. Outsourcing- tasks that were previously conducted in-house are now purchased from another firm. Example- indian accountants trained in us tax rules performing work for us firms. Globalisation has several facets including the globalisation of markets and production. Globalisation of markets- the merging of historically distinct and separate national markets into one huge global marketplace. In australia 77% of the firms exporting are small firms. Example- gekko systems- an innovator in mining technology.
