The impact of globalisation on Northern Ireland

What is Globalisation?

Globalisation is the movement of people, goods and ideas around the world.

How does globalisation affect Northern Ireland?

- Globalisation has affected Northern Ireland in that companies in Northern Ireland have a greater reliance on the global economy, if they want to survive and continue to be competitive.

- Globalisation has affected Northern Ireland as international trade has increased in Northern Ireland meaning that companies in Northern Ireland are doing business and have relationships with businesses in other countries throughout the world.

- Globalisation has affected Northern Ireland by many multinational companies setting up in Northern Ireland, for example like Coca-Cola, McDonald's, Nike and many others.

- Globalisation has affected Northern Ireland as companies in Northern Ireland are expected to export their goods and services to other countries like Brazil, France, Germany, America and many more.

- Globalisation has affected Northern Ireland as the Northern Ireland Government works to attract companies to set up and employ people in Northern Ireland.

- Globalisation has affected Northern Ireland as it is now referred to as a global village. This is because of its trade links and trade relationships with other companies across the globe.

There are many advantages to globalisation for businesses in Northern Ireland such as having the freedom to trade with other businesses and customers all around the world. However, there are drawbacks which businesses in Northern Ireland may encounter as a result of globalisation. Some of these include:

Competition - when a business enters the international market, it will be faced with competition because there are so many more businesses trying to sell similar products.

Language barriers – language barriers are a major drawback and businesses have to ensure that some of their members of staff are capable of speaking, writing and translating the language of the country in which trading is taking place, particularly if they need to negotiate contracts or agree the price of goods being bought or sold.

Expense - a business may need to employ extra workers in order to ensure that the business is fully equipped to cope with increased demands for goods and a business may find this financially difficult.

Constant Research - a business may need to constantly research appropriate transporting arrangements, that workers' human rights in other countries are being adhered to and that the production of goods is being carried out responsibly.

Dealing with different currencies - currency exchange rate fluctuations may have an impact on the price of goods/services, sometimes making items more expensive to purchase depending on the exchange rates between currencies.

Different ways of trading - businesses need to be familiar with various types of

documentations required for trading and this may prove cumbersome and time consuming for businesses.

Loss of skilled workers - Skilled employees may leave Northern Ireland in order to take up employment abroad, leaving Northern Ireland with fewer skilled workers that are useful for businesses to employ.

QUESTIONS YOU COULD BE ASKED:

Explain two benefits of globalisation to local businesses in Northern Ireland. (4marks)

It allows local businesses in Northern Ireland to sell their products or services to more countries. This can increase demand and help the business grow, leading to more job opportunities and helping to reduce unemployment in the local area. (2 marks)

It means workers can move more easily between countries. This gives local businesses a larger pool of skilled employees to choose from, helping them improve the quality of their services or products. (2 marks)

Explain two reasons why language barriers may present a problem for a business operating in Northern Ireland's global economy. (4marks)

A business in Northern Ireland may struggle to trade globally if no one in the business speaks the language of the country they want to trade with. This can lead to mistakes in product design, manufacturing, or marketing, which can be very costly. (2marks)

The business might have to hire a translator or linguist to help with communication. This can be expensive and may be hard for a small business to afford, affecting their profits. (2marks)

You should read:

How globalisation has affected changing employment patterns in Northern Ireland

Emerging Careers in Northern Ireland as a result of Globalisation