Y10 Business Studies - C29 Business & the International Economy

What is globalisation?

• A method of increasing local business

• A restriction on international trade

• A type of tax on imports

• A process connecting countries through trade

Which of the following is a reason for globalisation?

• Increased government regulations

• Higher import tariffs

• Improved and cheaper travel

• Decreased international trade

What is a characteristic of globalisation?

• Decrease in product movement

• Reduction in global brands

• Isolation of economies

• Growth in international trade

What is a potential opportunity of globalisation for businesses?

• Limited job opportunities

• Increased local competition

• Access to larger markets

• Higher production costs

What is a threat of globalisation?

• Reduced international trade

• Higher marketing costs

• Increased job security

• Lower competition

What is an import tariff?

• A subsidy for local businesses

• A type of international agreement

• A tax on imported goods

• A limit on the quantity of goods

What is the purpose of a quota?

• To lower import costs

• To reduce local production

• To limit the quantity of goods

• To increase competition

What is one benefit of a multinational company (MNC) to a host country?

• Increased local taxes

• Improved infrastructure

• Decreased quality of goods

• Higher unemployment rates

What is a drawback of a multinational company to a host country?

• Increased job opportunities

• Environmental damage

• Cultural exchange

• Improved local economy

What does exchange rate appreciation mean?

• Currency becomes less valuable

• Currency value decreases

• Currency value increases

• Stable currency value