Global Business. What is a Global Company?. It is a business that operates all over the world and; Treats the world as one country. Locates in low wage countries. Purchases raw materials from cheapest country. Borrows from cheapest country. Moves managers around. Examples. Coca-Cola
Increase Sales: Higher profits.
(home market saturated)
Mass Production:Enables Economies of Scale (more produced = lower cost per unit).
Developments in ICT: Communication is faster & easier.
Deregulation: World Trade Organisation
making trade easier.
Standardised Marketing Mix wherever possible.
LHD rest of world.
The more products that are made/advertised the cheaper per unit to make/promote.
There is no more potential to increase sales at home.
1. Increase sales:
Advantages of TNC’s
TNC’s locate in Ireland for the following reasons.
will be sold.
State Owned Enterprise