OCR A-Level Business: global business complete overview

Global business is the theme that takes the whole subject international: how globalisation has connected economies, how trade barriers and blocs shape it, why firms become multinationals and how they enter foreign markets, how they market across cultures, and how they judge which countries to enter. It is the focus of Component 3, the global business environment, though the same seven themes underlie it. This overview maps the theme; each section links to a full dot-point answer.

Globalisation and international trade

Globalisation is the growing integration of economies, driven by trade liberalisation, technology and transport. Firms trade and expand abroad for markets, scale and resources, and exchange rates shape the costs and revenues of doing so.

Protectionism and trading blocs

Protectionism (tariffs, quotas, subsidies) shields domestic firms but raises prices and risks retaliation. Trading blocs remove barriers between members, opening large markets but bringing tougher internal competition.

Multinationals and FDI

Foreign direct investment turns firms into multinationals, entering markets through exporting, offshoring, outsourcing, joint ventures or acquisitions, with significant and contested impacts on host and home countries.

Global marketing

Marketing abroad turns on standardisation versus adaptation, usually resolved by glocalisation, and on respecting cultural and social factors.

Assessing a country

Firms judge a country as a market (size, income, competition, fit) or a production location (cost, infrastructure, skills, stability, risk), and the analysis drives whether and how to expand.

How to study this theme

1. Drill the calculations. Exchange-rate conversions and tariff effects must be automatic, with interpretation.
2. Weigh both sides. Globalisation, protectionism and multinationals all have benefits and drawbacks; judge in context.
3. Link to the other themes. Global marketing, operations and finance recur here in an international setting.
4. Revise from the official specification. Use the current OCR H431 document.

For the full specification, see OCR.