Recap – 7 mins

Performance, change in leadership

1. An internal reason why objectives could change?
2. An external reason why objectives
Changing could change?
market conditions

3. What
No. Of do we mean
competitors in market,by market
inflation, changesconditions?
in economy, interest rates and tax

4. A possible targetTofor struggling

reduce businesses?
costs, to increase efficiency

5. A possible Totarget for growing

increase market businesses?
share, to expand into new markets (countries)

6. What do we mean by retrenchment?

Downsizing the business, closing stores
 00/00/20

Business and
globalisation 1

• Define globalisation
• Benefits and drawbacks of globalisation
• Explain what protectionism is and how it works
 Starter
Hans Riegel started up Haribo in 1920,
from very small humble beginnings. It
is now one of the best known
confectionery brands in the world.
They have many manufacturing plants
in Europe. They have adapted their
sweets to different countries tastes.

What might the advantages of

producing and selling in different
countries be?
 International trade
International trade is the flow of goods
and services between countries i.e.
Importing and exporting
 Imports and exports? Money coming in or out?

Export - A
good sold to
Import - A good another
brought into the country
country (money (money
leaving UK) coming into
the UK)
 Globalisation
The increasing number of businesses that are
operating on an international scale
 Globalisation
Benefits to UK businesses Drawbacks to UK businesses
• Greater number of • Threat from foreign
customers to sell to in new businesses
markets • Challenge of adapting
• Lower cost of production in products to meet foreign
developing countries (lower customers needs
wages)
 3 mark – Q&A (4 mins)
Explain one benefit of
international trade to a UK
business (3)
• Allows to enter new markets in
different countries
• Greater number
Peer assess
of potential
customers
• Maximise sales
If UK businesses like Primark are getting their clothes made in
factories in Bangladesh.

What effect might this have on UK clothes factories?

How might this affect the UK economy?

Clothes factories in the UK

will suffer because no ones
buying from them, this is
where protectionism comes
in.
 Hitler video...
https://www.youtube.com/watch?v=RWOYCD7u9Hw

What is Hitler on about in this video?

 PROTECTIONISM
3 main ways the government
protects the businesses in
their country.

1. Tariffs
2. Quotas
3. Export subsidy
 Real life example
• Donald trump tariff
on Chinese steel

• Few months later

China retaliates
with tariff on US
imports
 10 oranges might be =
10 oranges = £2.50 £2.00 ...but with tariff £3.00
A physical limit on imports
Therefore, protecting UK
businesses that make jeans
 Reasons for trade barriers
• Protect jobs in infant
industries
• Protect jobs in domestic
industries
• Raise tax revenue from
tariffs
• Prevent dumping which
would affect domestic
industries prices
Explain one advantage to UK businesses of
protectionist policies such as a tariff (3)

• Protect UK businesses from competition in

other countries like China
• UK businesses can remain competitive/make
sales
• Increased revenue for UK businesses
Explain one disadvantage to UK businesses of
an increase in international trade (3) 4 mins
• Increased competition from foreign businesses

• As foreign businesses could target UK customers

• Reducing the market share of UK businesses

 Plenary – Pick a box
1 2 Ask someone a question 3 Lucky box
What is a tariff? based on today’s lesson You get to choose someone
else to pick a box

4 What is a 5 Whatglobalisation?
do we mean by 6 Something you’re not
sure about?
quota?

Very lucky box What is the point of One advantage to the UK of

7You get to choose someone
else to pick a box and you
8 protectionism? 9 using protectionism?
can’t be picked again