Why is franchising increasingly being used by franchisees as a form of business start-up? Firstly, I would like to put some light on the trade market that was there is late 1800s and early 1900s. This was the time when businesses used to trade within their countries only. Slowly businesses started growing. This was the time when the entrepreneurs started trading globally. Hence, in 1950s the growing of businesses internationally was termed as ‘Globalisation’. Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange (http://www.bbc.co.uk/schools/gcsebitesize/geography/globalisation/globalisation_rev1.shtml). Globalisation has increased trade internationally. Firms which were national firms are today Multinational Companies. Globalisation has rapidly increased in the last 50 years. Hence globalisation has resulted in increasing demand of the products, hence benefiting the economies of scale. As there is an increase in investment by the companies, there is sharing of knowledge and technology between the countries. It has also helped to reduce unemployment all around the world. But like everything, globalisation also has its disadvantages. As countries are becoming more and more dependent on each other, a bad economic shock in one country can affect the economy of other countries as well(http://www.economicsonline.co.uk/Global_economics/Globalisation_introduction.html). It has also
Globalisation is expressed in transcontinental flows and networks of activity, interaction and power between countries, irrespective of geographic distance. It establishes and maintains economic, political and socio-cultural relations. This interaction helps economies through growth in international trade, investment and capital flows. Some factors that have acted as the driving force of globalisation include technological innovation as it had made transport and communication around the world easier, capitalism and trade have also played an important role in encouraging globalisation. Trade
Globalisation has effects on the environment, culture, political systems, economic devel`opment, prosperity, and on human physical well-being in societies around the world. Globalisation allows free transfer of capital, goods, and services across nations.
Globalisation is the internationalization of trade and often forces businesses to adopt new strategies for operations to suit different cultures and economies. The often easily saturated domestic market has triggered many large
Global trade can help small businesses shield themselves against risk of dependence on one market.With global trade a new company can go from backyard status to global network. Businesses that engage in international trade are more productive, have greater job growth and likely to stay financially solvent. Although beneficial to involve in global trade there are also challenges such as learning new markets to complying with complex customs regulations(Competing in a new Era of Globalization). Mistakes could be potentially costly. Example Protectionism did more harm than good in The Great Depression,In the wake of protectionist laws global trade declined by 66% between 1929-1934. Protectionism requires resources and creates uncertainty in trade
Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation over the past hundred years has undoubtedly made the world more interconnected including closer societies, politics, economies, cultures and the environment. Globalisation has increased the production of goods and services. There are those who argue that globalisation creates "winners" and "losers," as some countries prosper, mainly European countries and America, whilst other countries fail to do well. For example, USA and Europe fund their own agricultural industries heavily so less economically developed
Globalisation is a broad term that is often defined in economic factors alone. The Dictionary at merriam-webster.com describes globalisation as “the process of enabling financial markets to operate internationally, largely as a result of deregulation and improved communication.” Also due to deregulation on the financial market, multi-national companies are free to trade and move their businesses to areas where a higher return or profit can be achieved. New technology also enables companies to relocate to areas where labour costs are lower, for instance movement of call centre jobs from the UK to India.
It has its advantages and disadvantages to franchise the business. It is a careful decision to make for anyone to invest a lot of money into a franchise and everyone should be comparing pros and cons.
Globalization builds good relationship between countries as they exchange products. Trade agreements like NAFTA, WTO, EU and ASEAN etc. are done to make the tie stronger and for the ease of trading with each other. It helps to avoid conflicts among countries, promotes understanding and goodwill.
Ans. Until then they were happy enough simply to expand their business in US, after that reached a certain size and the company had the management time to spend on it then it was time to think about replicating that success abroad. Because the markets abroad are much more competitive than in America where it is a slayer of small businesses, except for fresh produce sellers. Globalization has taken off in recent years, before the turn of the century it was much more difficult and expensive for franchises to efficiently expand outside of their native country.
Globalization offers industries many ways to increase their profits. Since businesses and corporations have access to a wider range of potential clients, they have a chance to increase profits. Global competition also
Not having to answer to a corporate boss is the dream of many and the flexibility that owning a business franchise creates provides this option. Success is not reached by simply creating a business, however. The level of success is measured by the size and efficiency of the business. Business growth is the driving force of the economy. The additional jobs and revenues created when a business expands allow the economy to grow at exponential rates. One of the fastest and most popular ways to increase the size of a business is to turn it into a franchise, which can then be purchased by individuals. Franchising provides opportunities that are beneficial to both the parent company and the purchaser. The company that owns the business can expand
People around the world are more connected to each other than ever before. Information and money flow quicker than ever. Products produced in one part of a country are available to the rest of the world. It is much easier for people to travel, communicate and do business internationally. This whole phenomenon has been called globalization. Spurred on in the past by merchants, explorers, colonialists and internationalists, globalization has in more recent times been increasing rapidly due to improvements in communications, information and transport technology. It has also been encouraged by trade liberalization and financial market deregulation.
The franchisor supplies raw materials and/or specialised knowledge to a franchisee who manufactures and wholesale distributes the finished product.
Globalisation, in particular economic globalisation has had many impacts, both beneficial and negative, on Asia. Economic globalisation refers to the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology (Potocki 2). Economic globalisation has seen many benefits for Asia as it allows for freer trade between countries within Asia as well as worldwide to Western countries such as the United States. Advancements in technology has been a major benefit to economic globalisations as it decreases the costs of communication and transportation of goods, which is of great benefit for trading between nations and connecting Asia and the rest of the world (Shangquan 1). Economic globalisation has also allowed for products to be manufactured at a much lower cost as well as being sold for a lower cost. This can be seen with the prices of computers reducing and only costing approximately 1/125
Globalization became a worldwide phenomenon with the growth of market economy and information technology. With globalization, the operators of companies and enterprises could use resources, management, expertise, information and labour of the entire world to manufacture the goods in the most appropriate areas, and then sell the produce to the areas which require them, to accomplish the most favourable distribution of resources in the world. This caused enterprises and countries to break out the boundaries of the local resources and markets, starting a competition with others in a broader sense to accomplish development. Globalization brings states and regions together by reducing the distances between each other and increasing the degree