2.1.3 Business and Globalisation

Which of the following best describes the term globalisation?

• Goods purchased from overseas by UK businesses and consumers

• The process by which the world is increasingly becoming one market

• When a business produces goods in more than one country

• When goods and services are made in one country and sold in another

ASEAN (Association of South East Asian Nations) is an example of which of the following?

• Tariff

• Import

• Trade bloc

• Export

Imports are a feature of global markets. Which of the following is an example of a UK import?

• A lamp made in China is sold to UK customers

• A vase made in Spain is sold to customers in Spain

• A table made in the UK is sold to customers in Germany

• A kettle made in the UK is sold to UK customers

Exchange rates are important to businesses that trade globally. Which of the following is true if a country’s currency becomes stronger?

• Bad for business that exports as goods are more expensive overseas

• Bad for consumers as prices of imports will increase

• Bad for business that exports as goods are less expensive overseas

• Bad for business that imports raw materials as prices will increase

A UK business extends its delivery service to include overseas markets. This is an example of changing which element of the marketing mix to compete internationally?

• Product

• Price

• Promotion

• Place

A UK business might relocate operations abroad in order to:

• Benefit from higher labour costs

• Avoid import tariffs

• Build a factory on more expensive land

• Avoid bad publicity created through the closure of UK factories

Which of the following is a benefit to UK businesses of globalisation?

• Being vulnerable to the world economic climate

• Increased competition can lead to business failure

• Access to new and bigger markets

• Multinational firms are increasingly powerful

Which of the following best describes the term imports?

• Goods produced by UK businesses and purchased by other UK businesses

• Goods purchased from overseas by UK businesses and consumers

• Goods produced by a business in one country and sold in another

• Goods purchased by UK businesses from other UK producers

Which of the following best describes the term multinationals?

• Goods made in one country and then sold to a different country

• Businesses that have operations in more than one country

• Goods or services that are bought from overseas

• Businesses that only have operations in one country

A multinational business reduces the amount charged for products sold in a country with lower than average income levels. Which element of the marketing mix has been changed to help the business compete internationally?

• Product

• Price

• Promotion

• Place