My Big Fat Revision

Many car manufacturers are expected to respond to a fall in overall capacity utilisation in the industry by cutting prices. To what extent is cutting prices a good way for any business to respond to a fall in the overall capacity utilisation in its industry? Capacity utilisation is the percentage of total capacity that is actually achieved in a period of time. The extent to which cutting prices is a good way for a business to respond to a fall in capacity will depend on the price elasticity. This essay will look at whether it is good for all businesses or not. Cutting prices would lead to the product becoming more accessible. Reducing overall capacity utilisation means that the business will have higher costs as demand is lower; goods being sold will not have their revenue spread across the fixed costs. A Daihatsu car may work to combat this because a car is a luxury product and is price elastic, meaning that demand will change as the price does. A fall in selling price will mean

Assess the role played by TNCs in the globalisation process (12 marks) Transnational companies (TNCs) are companies that have parts of their business in different parts of the world. This can be due to a country having cheap, flat land and also because wages can be low for those who are employed by the business. Having workplaces abroad has both positive and negative effects which we be explored, and will be weighed up to make a judgement on the overall role TNCs play in the globalisation process. When a TNC invests in a less economically developed country or a developing country, it does so because it is able to benefit from cheap workers. Often, places do not have a minimum wage like the United Kingdom does, meaning that they can be worked hard by the company to ensure heightened efficiency. However, because costs are low initially, it means that profit will increase which means that the company can reinvest and expand their branch. This can have negative effects on th

What is Globalisation? Globalisation is a process of global integration of economies, politics, products, ideas and other aspects of culture. This interconnectedness has grown massively over recent decades as a result of improved transport links and trade deals, as well as legislation. Advantages of globalisation ·        Globalisation has the potential to make the world a better place for people to live in, giving the unemployed jobs and through trying to eliminate poverty. ·        It provides developing countries with capital and technology meaning the likelihood that they will develop increases. This creates conditions where democracy and respect for human rights can flourish. ·        Socially, we have become more open, accepting and tolerant towards one another. ·        Transnational companies that invest in plants in other countries will provide employment for the people in those countries which can help them get out of poverty. ·        Global