Pearson Edexcel · A-Level · Economics B

    Course version: 9EB0 · Version from Sept 2015

    Responding to global demand: a) Globalisation vs glocalisation

    Full specification wording

    Responding to global demand: a) Globalisation vs glocalisation

    Globalisation refers to the increasing integration of the world's economies, often leading to standardised products being sold worldwide to achieve economies of scale.

    Checked against the Pearson Edexcel 9EB0 specification (opens in a new tab) on .

    • Point 1 of 4
    • 3 key terms

    Study notes

    From the checked teaching notes for this specification point.

    The idea

    Globalisation refers to the increasing integration of the world's economies, often leading to standardised products being sold worldwide to achieve economies of scale. In contrast, glocalisation is the adaptation of global products to meet the specific needs, tastes, and cultural expectations of local markets. For example, a multinational fast-food chain might standardise its branding globally (globalisation) but alter its menu to include vegetarian options in India or spicy variations in Mexico (glocalisation). Understanding the tension between these concepts is crucial for businesses responding to global demand, as they must balance the cost benefits of standardisation against the revenue benefits of local responsiveness.

    What earns the marks

    • Define globalisation as the trend towards a single, integrated and interdependent global economy with standardised products.
    • Define glocalisation as adapting a global product or marketing strategy to fit local cultural tastes and preferences.
    • Identify that globalisation allows firms to exploit significant economies of scale and reduce unit costs.
    • Explain that glocalisation can increase market share and customer loyalty in diverse regions by satisfying specific local demand.

    Common mistakes and how to put them right

    • Confusing the two terms.

      Put it right: Globalisation focuses on uniformity, whereas glocalisation focuses on local adaptation.

    • Assuming glocalisation means abandoning global branding.

      Put it right: Glocalisation maintains the global brand identity while tweaking specific product features or marketing messages.

    • Believing globalisation always guarantees higher profits.

      Put it right: Standardisation might fail if local cultural preferences are ignored, making glocalisation necessary for revenue growth.

    Exam tips

    • Use a clear example, such as a global menu adaptation, to illustrate glocalisation in multiple-choice or short-answer questions.
    • When evaluating a firm's strategy, weigh the cost savings of globalisation against the potential sales growth from glocalisation.
    • Read case study contexts carefully to identify whether a firm is struggling due to a lack of local adaptation.

    Try the lesson

    The start of the Responding to global demand: a) Globalisation vs glocalisation lesson, made from checked teaching notes for this specification point.

    Have a go first

    Which of the following best describes the business strategy of glocalisation?

    Listen

    Globalisation refers to the increasing integration of the world's economies, often leading to standardised products being sold worldwide to achieve economies of scale. In contrast, glocalisation is the adaptation of global products to meet the specific needs, tastes, and cultural expectations of local markets. For example, a multinational fast-food chain might standardise its branding globally (globalisation) but alter its menu to include vegetarian options in India or spicy variations in Mexico (glocalisation). Understanding the tension between these concepts is crucial for businesses responding to global demand, as they must balance the cost benefits of standardisation against the revenue benefits of local responsiveness. A strong answer earns marks for these points. Define globalisation as the trend towards a single, integrated and interdependent global economy with standardised products. Define glocalisation as adapting a global product or marketing strategy to fit local cultural tastes and preferences. Identify that globalisation allows firms to exploit significant economies of scale and reduce unit costs. Explain that glocalisation can increase market share and customer loyalty in diverse regions by satisfying specific local demand. A common slip: Confusing the two terms. Instead, globalisation focuses on uniformity, whereas glocalisation focuses on local adaptation. Exam tip: Use a clear example, such as a global menu adaptation, to illustrate glocalisation in multiple-choice or short-answer questions.

    See it

    A top-down flowchart. A node labelled Globalisation leads to Standardised products sold worldwide, which leads to Economies of scale, which leads to Reduced unit costs. Separately, a node labelled Glocalisation leads to Adapt global product to local needs, tastes and culture, which leads to Increased market share and customer loyalty. A node labelled Business responding to global demand points to both Globalisation and Glocalisation, and also points to a node labelled Balance cost benefits of standardisation against revenue benefits of local responsiveness.
    It contrasts globalisation, which standardises products worldwide to gain economies of scale and lower unit costs, with glocalisation, which adapts global products to local tastes to raise market share and loyalty, and shows a business balancing the two.

    Key words

    Say what each word means before you turn the card.

    Globalisation

    Try answering aloud or in your head before turning the card.

    Glocalisation

    Try answering aloud or in your head before turning the card.

    Economies of scale

    Try answering aloud or in your head before turning the card.

    See every definition
    Globalisation
    The increasing integration of the world's economies, often leading to standardised products being sold worldwide to achieve economies of scale.
    Glocalisation
    The adaptation of global products to meet the specific needs, tastes, and cultural expectations of local markets.
    Economies of scale
    Cost benefits that firms can exploit through standardisation, reducing unit costs.

    Label the diagram

    Some boxes have lost their names. Pick the right name for each number.

    The diagram again, with 3 boxes numbered instead of named. A top-down flowchart. A node labelled Globalisation leads to Standardised products sold worldwide, which leads to Economies of scale, which leads to Reduced unit costs. Separately, a node labelled Glocalisation leads to Adapt global product to local needs, tastes and culture, which leads to Increased market share and customer loyalty. A node labelled Business responding to global demand points to both Globalisation and Glocalisation, and also points to a node labelled Balance cost benefits of standardisation against revenue benefits of local responsiveness.

    • 1Box 1

    • 2Box 2

    • 3Box 3

    0 of 3 labelled

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