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Examine how globalisation impacts on world trade with reference to the operations of one multinational company that you have studied. - Leaving Cert Geography - Question 7B - 2020

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Question 7B

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Examine how globalisation impacts on world trade with reference to the operations of one multinational company that you have studied.

Worked Solution & Example Answer:Examine how globalisation impacts on world trade with reference to the operations of one multinational company that you have studied. - Leaving Cert Geography - Question 7B - 2020

Step 1

Identify a Multinational Company

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Answer

For this examination, we will focus on Apple Inc. as the multinational company studied. Apple operates globally, producing and selling a wide range of electronics, software, and services.

Step 2

Examine the Impact of Globalisation on World Trade

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Answer

Globalisation has significantly impacted world trade through various dimensions such as supply chains, market access, and cultural exchange.

  1. Supply Chains: Apple's operations demonstrate how globalisation facilitates intricate supply chains. Components for their products are sourced from various countries, including processors from Taiwan and screens from South Korea, showcasing the interconnectedness of global manufacturing.

  2. Market Access: With globalisation, Apple has been able to expand its market access. The company has established a presence in emerging markets like India and China, significantly increasing its customer base and revenue.

  3. Cultural Exchange: Apple’s branding and product design also reflect cultural influences, allowing for a blend of various cultural elements in their products, which resonates with a diverse audience globally.

  4. Innovation and Competition: Globalisation encourages competition and innovation, driving Apple to consistently improve its products and integrate new technologies to maintain its market position.

  5. Trade Policies: Globalisation often leads to the formation of trade agreements which can benefit companies like Apple. For instance, lower tariffs in certain regions allow Apple to offer more competitively priced products.

By examining these factors, it becomes clear that globalisation plays a crucial role in shaping the operations and strategies of multinational corporations like Apple in the realm of world trade.

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