Knowledge Retrieval

What is one of the primary impacts of globalization on businesses?

• Decreased competition

• Increased access to international markets

• Reduced innovation

• Limited consumer choices

How do exchange rate fluctuations affect multinational companies?

• They have no impact on profits.

• They can lead to unpredictable changes in revenue.

• They always benefit the company.

• They only affect domestic companies.

Which of the following is a common method for measuring business performance?

• Employee satisfaction surveys

• Gross Domestic Product (GDP)

• Market Share

• Exchange rate analysis

What is a major cause of business failure?

• Excessive market research

• Strong brand loyalty

• Poor financial management

• High employee morale

Which global trade idea aims to reduce tariffs and trade barriers between countries?

• Protectionism

• Trading Blocs

• Embargoes

• Quotas

What is a key characteristic of multinational corporations?

• They operate in only one country.

• They have a global presence and operate in multiple countries.

• They focus solely on local markets.

• They avoid international trade.

How can high interest rates impact a business?

• They make borrowing cheaper.

• They increase the cost of loans.

• They have no effect on business operations.

• They reduce the cost of production.

What is one way businesses can mitigate the risks of exchange rate fluctuations?

• Ignoring currency trends

• Using hedging strategies

• Increasing product prices arbitrarily

• Reducing international operations

Which of the following is an indicator of business success?

• High employee turnover

• Consistent financial losses

• Strong customer loyalty

• Decreasing market share

What is a potential consequence of globalization for local businesses?

• Increased local market dominance

• Greater competition from international companies

• Reduced need for innovation

• Decreased consumer base