ENTREPRENEURSHIP

Detailed explanation-1: -Increased economies of scale Globalisation enables goods to be produced in different parts of the world. This greater specialisation enables lower average costs and lower prices for consumers.

Detailed explanation-2: -How does the role of globalisation impact prices for businesses? Here are some examples: Less room for price increases, meaning lower (nominal) profits for businesses. Greater selection of raw materials, with competition causing a reduction in costs for businesses.

Detailed explanation-3: -What are economies of scale? Economies of scale are cost advantages that can occur when a company increases their scale of production and becomes more efficient, resulting in a decreased cost-per-unit. This is because the cost of production (including fixed and variable costs) is spread over more units of production.

Detailed explanation-4: -Economies of scale refer to the lowering of per unit costs as a firm grows bigger. Examples of economies of scale include: increased purchasing power, network economies, technical, financial, and infrastructural. When a firm grows too large, it can suffer from the opposite – diseconomies of scale.