4.1

What is the primary measure used to compare the economic growth of different countries?

• Gross Domestic Product (GDP) per capita

• Literacy rate

• Health expenditure

• Human Development Index (HDI)

Which of the following regions is experiencing significant economic growth due to emerging economies?

• Europe

• Asia

• North America

• Antarctica

Grace, an entrepreneur from the United States, decides to invest in a manufacturing company based in India. What is the term for this type of financial investment made by an individual or company in one country into business interests located in another country?

• Export

• Import

• Foreign Direct Investment (FDI)

• Trade liberalisation

Samuel runs a manufacturing business in a country experiencing rapid economic growth. Which of the following is a potential implication of this economic growth for Samuel's business?

• Decreased trade opportunities

• Increased employment patterns

• Reduced literacy rates

• Lower GDP per capita

Jacob runs a company that exports products to several countries. Recently, international trade barriers have been reduced. What is the effect of this change on globalisation?

• It decreases globalisation

• It has no effect on globalisation

• It increases globalisation

• It leads to protectionism

Muhammad is starting a business to export goods to another country. He discovers that the government of that country imposes certain restrictions on imported products. Which of the following is an example of a trade barrier Muhammad might face?

• Tariffs

• Free trade agreements

• Open borders

• Globalisation

Samuel owns a business in a country that recently joined the EU trading bloc. What is the impact of this change on Samuel's business?

• They restrict market access

• They increase competition

• They provide access to larger markets

• They decrease trade opportunities

Which of the following is a key indicator of a country's health status?

• GDP per capita

• Literacy rate

• Life expectancy

• Human Development Index (HDI)

Henry runs a small manufacturing business and is concerned about competition from foreign companies. What role does government legislation play in protectionism that could help Henry's business?

• It encourages free trade

• It imposes tariffs

• It removes import quotas

• It provides domestic subsidies

Daniel owns a bakery that specialises in artisan bread. Which of the following is a benefit Daniel might experience from this business specialisation?

• Decreased efficiency

• Loss of competitive advantage

• Increased competitive advantage

• Higher production costs