Y9 Business Studies - C22 Business in International Community

What is the value of one currency compared to another?

• Exchange rate

• Interest rate

• Fixed rate

• Market trend

What is the impact of currency appreciation on import prices?

• Import prices rise

• Import prices fall

• Export prices rise

• Export prices fall

Which type of exchange rate allows the currency to change freely based on market forces?

• Floating rates

• Fixed rates

• Depreciation rates

• Appreciation rates

What is the purpose of international economic organisations?

• To increase trade barriers

• To limit competition

• To decrease globalisation

• To resolve trade problems

What is the process by which countries are connected through the trade of goods and services?

• Specialisation

• Multinationalism

• Globalisation

• Economisation

What is the main reason for businesses to become multinationals?

• To limit production

• To reduce competition

• To cut labour costs

• To increase taxes

What is the advantage of multinational companies operating in a country?

• Less competition

• More tax revenues

• Decreased national output

• Increased imports

What is the disadvantage of multinational companies operating in a country?

• Increased profits flowing in the country

• Influence on government policy

• Local firms becoming more competitive

• Currency appreciation

Which international economic organisation creates a single market in the European Union?

• World Trade Organisation (WTO)

• United Nations (UN)

• North American Free Trade Agreement (NAFTA)

• European Union (EU)

What is the value of 1 US dollar in Malaysian Ringgit according to the text?

• 4.65

• 1.00

• 5.20

• 3.80