What are only giving the opportunities?

Analyse questions need the threats too, above all tougher competition from cheaper foreign firms.

WalesBusinessSyllabus dot point

How does global trade affect businesses, and what are the chances and risks of going international?

Globalisation and international trade: the meaning of globalisation, imports and exports, the role of multinationals, the opportunities and threats of trading internationally, and the impact of globalisation on businesses and Wales.

A focused answer to the WJEC GCSE Business content on globalisation and international trade, covering the meaning of globalisation, imports and exports, multinationals, the opportunities and threats of trading abroad, and the impact on businesses and Wales.

Generated by Claude Opus 4.812 min answerUpdated 2026-06-15

Reviewed by: AI editorial process; not yet individually human-reviewed

Have a quick question? Jump to the Q&A page

Quick answer

Globalisation is the growing connection and integration of economies and businesses around the world, so they increasingly trade, invest and operate across national borders, helped by better transport, communication and the internet. International trade is the buying and selling of goods and services between countries: imports are goods and services a country buys from abroad, and exports are goods and services it sells abroad. Multinationals are large businesses that operate in more than one country, and they are a major feature of globalisation, with huge economies of scale and global brands. Globalisation creates real opportunities for a business: a much larger market to sell to through exports, cheaper supplies and labour from overseas, and access to new ideas and technology. But it also brings threats: tougher competition as foreign firms sell into the home market, often at lower prices, and the risk of relying on distant suppliers. For Wales, globalisation has brought investment and jobs from multinationals and wider markets for Welsh products, but also competition that has affected some traditional industries. Whether globalisation helps a particular business depends on whether it can seize the opportunities while defending itself against global competition.

Jump to a section

What this dot point is asking
What globalisation is
Imports and exports
Multinationals
Opportunities and threats
The impact on Wales
Why this matters
Try this

What this dot point is asking

WJEC wants you to understand globalisation and international trade. You need the meaning of globalisation, the difference between imports and exports, the role of multinationals, the opportunities and threats of trading internationally, and the impact of globalisation on businesses and on Wales. This is the external influence that connects a local Welsh firm to the wider world economy.

What globalisation is

It has grown because of better transport, communication and the internet, which let a business buy, sell and operate almost anywhere.

Imports and exports

A Welsh firm that sells lamb to France is exporting; a shop that stocks goods made in China is selling imports.

Multinationals

Multinationals are central to globalisation: they enjoy huge economies of scale, run global brands, and can bring investment and jobs to the countries they operate in.

Opportunities and threats

The impact on Wales

Why this matters

Globalisation links to the economic climate (exchange rates affect imports and exports), to growth (firms expand into multinational scale), to ethics and the environment (global supply chains raise questions about workers and transport emissions), and to technology (the internet drives global trade). Exam questions usually ask you to weigh the opportunities and threats of globalisation for a business, where the balance between bigger markets and tougher competition earns the marks.

Weigh globalisation for a small Welsh food producer

A small Welsh cheese maker is considering exporting to Europe while also facing cheaper imported cheese in UK supermarkets.

step Identify the opportunity

Globalisation gives the cheese maker access to a much larger market: it could export its Welsh cheese to Europe, raising sales beyond what the local UK market allows, and use its Welsh origin as a selling point.

step Identify the threat

At the same time, globalisation lets cheaper foreign cheese into UK supermarkets, so the firm faces more competition at home and could lose customers who choose the cheaper import.

step Weigh the two and conclude

Globalisation offers the cheese maker a bigger market through exports but exposes it to cheaper rivals at home. Because it is small and makes a distinctive, quality product, it should compete on quality and Welsh identity rather than price, taking the export opportunity while defending its niche at home. For a firm that could only compete on price, globalisation would be more of a threat, which shows the effect depends on the business.

Try this

Q1. State the difference between an import and an export. [2 marks]

Cue. An import is a good or service bought from abroad; an export is a good or service sold abroad.

Q2. Explain one threat globalisation creates for a UK business. [2 marks]

Cue. More competition, because foreign firms can sell into the UK market, often at lower prices, so the business may lose customers if it cannot compete.

Exam-style practice questions

Practice questions written in the style of WJEC exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.

WJEC (Unit 1)2 marksExplain what is meant by globalisation.

Show worked answer →

A 2-mark AO1 definition with development. Globalisation is the growing connection and integration of economies and businesses around the world, so that they increasingly trade, invest and operate across national borders.

Develop it: it means a business can buy supplies, sell products and set up operations almost anywhere in the world, and customers can buy goods from many countries, helped by improvements in transport, communication and the internet. Markers reward the core definition for one mark and a developed point for the second.

WJEC (Unit 1)6 marksAnalyse the opportunities and threats that globalisation creates for a UK business.

Show worked answer →

A 6-mark AO1 and AO3 analyse question. Reward developed points on both sides.

Opportunity: globalisation lets a business sell to a much larger market abroad through exports, and buy supplies more cheaply from overseas, which can raise sales and lower costs.

Threat: it also brings more competition, because foreign firms can sell into the UK market, often at lower prices, so a UK business can lose customers if it cannot compete.

Chain and judgement: globalisation opens up bigger markets and cheaper supplies but exposes a firm to tougher global competition, so the net effect depends on whether the business can take the opportunities while defending itself against rivals. Markers reward developed points on both sides plus a balanced comment.

Related dot points

Sources & how we know this

WJEC GCSE Business specification (Wales) — WJEC (2025)
WJEC GCSE Business (Wales) specification (3510) — WJEC (2017)