Syllabus: Pearson Edexcel GCSE Business
Module: Growing the Business
Lesson: 2.1.3 Business and Globalisation

Introduction

Today’s businesses operate in a world where borders matter less than ever before. This topic explores how companies source materials globally, sell to international customers, and compete in markets thousands of miles from home. Understanding globalisation helps students see why the trainers on their feet might be designed in America, manufactured in Vietnam, and sold by a British retailer. It’s about connecting classroom concepts to the international business world students experience every day as consumers of global products and services.

Key Concepts

According to the Pearson Edexcel GCSE Business syllabus, the key concepts under Business and globalisation include:

• The Impact of Globalisation on Businesses:

  • Imports: Competition from overseas businesses and buying materials or products from overseas suppliers
  • Exports: Selling products to overseas markets and expanding customer base internationally
  • Changing business locations: Relocating operations to different countries for cost or strategic advantages
  • Multinationals: Large corporations operating across multiple countries with integrated global strategies

• Barriers to International Trade:

  • Tariffs: Taxes imposed on imported goods to protect domestic industries
  • Trade blocs: Groups of countries with preferential trading arrangements (e.g., free trade areas, customs unions)

• How Businesses Compete Internationally:

  • The use of the internet and e-commerce: Digital platforms enabling global reach without physical presence
  • Changing the marketing mix to compete internationally: Adapting product, price, place, and promotion strategies for different markets

These concepts help students understand the complex dynamics of global business operations and the strategic decisions companies must make when operating across national boundaries.

Real-World Relevance

Globalisation shapes businesses and products students interact with daily:

• Imports and Exports in Action:

  • When students shop at ASOS, they’re participating in globalisation – the company sources clothes from Asian manufacturers and ships to customers in over 200 countries. That T-shirt might have crossed more borders than the student wearing it.
  • The Jaguar or Land Rover on local roads contains components from dozens of countries before being exported worldwide – a rolling example of global supply chains.
  • Even something as British as a cup of tea represents globalisation – UK companies import leaves from India and Kenya, then export finished products globally.

• Changing Business Locations:

  • When students call customer service, they might be speaking to someone in India or the Philippines – companies relocate operations to balance costs and capabilities.
  • Dyson moved its headquarters from the UK to Singapore in 2019 – not abandoning Britain, but positioning itself closer to Asian growth markets.
  • Unlike competitors who manufacture in Asia, Zara keeps production closer to home in Spain and nearby countries – showing there’s no one-size-fits-all approach to global operations.

• Multinationals in Students’ Lives:

  • Unilever products fill bathroom cabinets across 190 countries – the same company makes Dove, Lynx, and Ben & Jerry’s, adapting each for local markets.
  • BP coordinates oil exploration, refining, and thousands of petrol stations across dozens of countries – a global operation behind a local service station.
  • Tesco operates stores from the UK to Thailand, adapting its format while maintaining core brand elements – globalisation with local flavor.

• Trade Barriers Students Can Observe:

  • Post-Brexit changes have affected product availability and prices in ways students might notice on shop shelves.
  • The UK’s departure from the EU trade bloc has created new paperwork and costs that affect businesses students interact with.
  • International trade disputes, like US tariffs on British steel, impact local communities where these industries operate.

These examples connect abstract globalisation concepts to brands and products already familiar to students.

How It’s Assessed

In exams, students will typically encounter:

• Multiple-choice questions: Testing basic knowledge of globalisation concepts, trade barriers, and international business strategies.

• Short-answer questions: Explaining specific aspects of globalisation and their impact on businesses.

• Case study questions: Identifying globalisation factors in business scenarios, explaining their significance, and analyzing potential responses.

• Extended response questions: Discussing different aspects of globalisation for specific business contexts, weighing advantages and disadvantages.

Students need to know specific globalisation concepts, understand their impact on businesses, and evaluate international business strategies. Command words to watch for include “identify,” “explain,” “analyze,” and “evaluate,” with higher marks for balanced arguments that consider both advantages and disadvantages of different approaches.

Enterprise Skills Integration

Understanding globalisation builds practical skills students can use beyond exams:

• Global awareness: Developing the ability to think beyond local contexts and understand international perspectives – essential in our connected world.

• Adaptability: Seeing how businesses modify strategies for different markets helps students appreciate flexibility in changing environments.

• Research and analysis: Evaluating international opportunities develops the ability to gather and interpret information from diverse sources.

• Problem-solving: Analyzing how businesses overcome trade barriers fosters creative problem-solving capabilities.

• Digital literacy: Understanding how e-commerce enables global business develops appreciation for digital technologies in modern commerce.

These skills transfer well beyond business studies to any career in our increasingly globalised economy.

Careers Links

Knowledge of globalisation connects to numerous career paths:

• International Trade: Import/Export Specialists, Customs Compliance Officers, and International Trade Advisors help businesses navigate cross-border trade.

• Global Supply Chain: Supply Chain Managers, Logistics Coordinators, and Procurement Specialists manage the movement of goods internationally.

• International Marketing: International Marketing Managers, Global Brand Strategists, and Market Entry Specialists develop strategies for different cultural contexts.

• Foreign Exchange: Foreign Exchange Analysts, International Finance Specialists, and Treasury Managers help businesses manage currency risks.

• International Business Development: International Business Development Managers, Global Account Executives, and Market Expansion Specialists pursue opportunities in new geographic markets.

Understanding globalisation isn’t just for future multinational executives – it’s relevant to careers in businesses of all sizes as international connections become increasingly common.

Teaching Notes

• Start with the global journey of a familiar product – perhaps tracing a smartphone’s components from raw materials to assembly to local store. This makes abstract concepts tangible.

• Use maps and visual aids to illustrate global supply chains, showing how products cross multiple borders before reaching consumers.

• Try simulation activities where student teams develop international expansion strategies for a fictional business. Should a UK clothing brand enter France, Japan, or Brazil first? Why?

• Create debate opportunities on globalisation’s winners and losers. Do consumers always benefit from global sourcing? What happens to local industries when facing international competition?

• Watch for the misconception that globalisation benefits all businesses equally (ignoring size and resource disparities), or that international expansion is always profitable (ignoring market entry costs).

• For extension, have students research how specific UK businesses responded to Brexit or the pandemic – real-world case studies in adapting to global challenges.