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Define these terms and provide an example for each term to demonstrate your understanding - VCE - SSCE Business Management - Question 1 - 2004 - Paper 1
Question 1
Define these terms and provide an example for each term to demonstrate your understanding. a. globalisation b. outsourcing
Worked Solution & Example Answer:Define these terms and provide an example for each term to demonstrate your understanding - VCE - SSCE Business Management - Question 1 - 2004 - Paper 1
Step 1
a. globalisation
Answer
Globalisation refers to the removal of trade barriers across countries to allow organisations to move their competitive boundaries from a national to an international stage. This process enables many organisations to enhance their competitiveness by expanding their operations and tapping into opportunities to gain access to new markets.
For example, a company like Apple sources components from various countries, assembles its products in different locations, and sells them globally, which exemplifies the global nature of business in today's economy.
Step 2
b. outsourcing
Answer
Outsourcing is a commercial arrangement where one business provides services to another business. It allows larger organisations to concentrate on their core activities while transferring other aspects of the business to specialists.
For instance, many tech companies outsource their customer service operations to third-party firms, enabling them to maintain focus on product development and innovation while ensuring that their customer service is managed by specialists who can deliver enhanced support.