A-AS Level (CIE) Business Studies Paper-2: Specimen Questions with Answers 20 - 20 of 52

Passage

Case Study- 2

CAP Markets, a steadily growing chain of some 50 neighborhood supermarkets in Germany. Other examples are the St. Mary՚s Place Hotel in Edinburgh and the Hotel Tritone in Trieste. Social franchising also refers to a technique used by governments and aid donors to provide essential clinical health services in the developing world. Event franchising is the duplication of public events in other geographical areas, while retaining the original brand (logo) , mission, concept, and format of the event. As in classic franchising, event franchising is built on precisely copying successful events. Good example of event franchising is the World Economic Forum, or just Davos forum which has regional event franchisees in China, Latin America etc. Likewise, the alter-globalist World Social Forum has launched many national events. When the Music Stops is an example of an events franchise in the UK, in this case, running speed dating and singles events in short strong of time all these three companies have expanded their base and covered every corner of India. The biggest highlight of these companies is that despite being big players in the market they still provide small business franchise opportunities to the people. Apart from these three other entrepreneurs too offer attractive and alluring small business franchise opportunities.

Question 20 (3 of 6 Based on Passage)

Describe in Detail Subjective▾

State the essential conditions to be satisfies on the part of domestic economy as well as the firm for successful globalization of business.

Edit

Explanation

There are, however, some essential conditions to be satisfied on the part of the domestic economy as well as the firm for successful globalization of the business. They are:

  • Business Freedom: There should not be unnecessary Government restrictions which come in the way of globalization, like import restriction, restrictions on sourcing finance or other factors from abroad, foreign investments etc. That is why the economic liberalization is regarded as a first step towards facilitating globalization. develop globally from home country base
  • Facilities: The extent to which an enterprise can depends on the facilities available like the infrastructural facilities.
  • Government Support: Although unnecessary government interference is a hindrance to globalization, government support can encourage globalization.
  • Resources: Resources is one of the important factors which often decides the ability of a firm to globalize. Resources include technology, R&D, finance, capabilities, human resource etc. It should, however, be noted that many small firms have been very successful international business because of one or other advantage they possess.

🎯 Select Paper 📂