Business and the international economy

The increasing number of ___ agreements between countries has reduced protection for industries.

• tariff

• exchange rate

• free trade

• quota

___ selling makes it easier to order goods that can be sent abroad

• Retail

• Wholesale

• Online

• Bulk

Increased globalisation has sometimes meant that foreign competitors offer cheaper prices that then threaten___businesses.

• local

• government

• multinational

• global

--- are likely to receive increased dividends from higher profits when a business becomes a multinational.

• Managers

• Shareholders

• Employees

• Costumers

A potential drawback to a country when a multinational locates there is that the jobs are often ___

• only management roles

• high-skilled research tasks

• only for local people

• unskilled assembly line tasks

An appreciation in the exchange rate is likely to lead to import prices___

• rising

• falling

• staying the same

• causing export prices to rise

There are both opportunities for and threats to businesses from globalisation.

• True

• False

Increasing investment from multinational businesses to set up operations in a country is a threat to local businesses.

• True

• False

All local businesses suffer when a multinational locates in their country

• True

• False

When the exchange rate depreciates imports become cheaper.

• True

• False