Chapter 14 - The Bigger Picture

What is the definition of globalisation?

• The process of countries becoming isolated from each other.

• The process by which the world becomes interconnected through increased trade and cultural exchange.

• The process of countries adopting a single currency.

• The process of reducing international trade barriers.

Why do companies engage in globalisation?

• To increase local competition.

• To reduce their market size.

• To access new markets and increase profits.

• To avoid foreign direct investment.

What is a transnational company?

• A company that only exports goods.

• A company that has its head office in one country and operates in several others.

• A company that only imports goods.

• A company that operates only in its home country.

Which of the following is a reason why technology has increased globalisation?

• It has improved connectivity and communication.

• It has decreased communication between countries.

• It has increased trade barriers.

• It has made transportation slower.

What is one impact of global companies on consumer choice?

• Increased variety of goods and services.

• Higher prices for all products.

• Limited access to foreign products.

• Decreased variety of products.

What is foreign direct investment (FDI)?

• When a foreign company invests in another country.

• When a company only imports goods.

• When a company invests in its own country.

• When a company only exports goods.

What is one positive impact of globalisation?

• Increased isolation of countries.

• Decreased employment opportunities.

• Higher prices for consumers.

• Greater choice of goods and services.

What is one negative impact of globalisation?

• It decreases foreign direct investment.

• It benefits the poor more than the rich.

• It can lead to environmental degradation.

• It reduces global connectivity.

What is electronic commerce?

• Exchanging goods without using money.

• Trading goods in physical stores.

• Buying and selling goods or services over the internet.

• Investing in foreign companies.

What is one advantage of e-commerce for customers?

• Convenience and choice.

• Increased fraud risk.

• Inconvenient returns.

• Limited product details.