Understanding International Trade and Globalisation

What is meant by international trade?

• The exchange of goods and services within a single country

• The exchange of goods and services between different countries

• The exchange of goods and services within a continent

• The exchange of goods and services within a city

Which of the following is an advantage of international trade for UK businesses?

• Increased competition from foreign companies

• Access to a larger market for their products

• Higher tariffs on imported goods

• Increased regulatory requirements

Which of the following is a disadvantage of international trade for UK businesses?

• Access to cheaper raw materials

• Increased competition from foreign companies

• Opportunities for business expansion

• Access to new technologies

What is meant by globalisation?

• The process of making a product available only in local markets

• The process of businesses operating on a global scale

• The process of reducing international trade

• The process of increasing tariffs on imports

Which of the following is an opportunity for businesses operating in a global marketplace?

• Increased local competition

• Access to a wider customer base

• Higher transportation costs

• Increased regulatory challenges

Which of the following is a threat to businesses operating in a global marketplace?

• Access to new markets

• Increased risk of currency fluctuations

• Opportunities for cost reduction

• Access to global talent

What is the impact of globalisation on UK businesses and their stakeholders?

• Decreased access to international markets

• Increased opportunities for growth and expansion

• Reduced competition from foreign companies

• Limited access to global resources

What is a multinational company?

• A company that operates in only one country

• A company that operates in multiple countries

• A company that only exports goods

• A company that only imports goods

Which of the following is an impact of multinationals on the UK economy?

• Decreased foreign investment

• Creation of job opportunities

• Reduction in technological advancements

• Decreased access to international markets

How can globalisation affect the stakeholders of UK businesses?

• By reducing the availability of foreign investment

• By increasing the diversity of products available to consumers

• By limiting access to international markets

• By decreasing the need for innovation