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Competitive advantage and economic interdependence

Total questions: 20

Worksheet time: 12mins

Name
Class
Date
1.

Worldwide markets where the buying/selling of goods and services takes place by all nations is known as?

a)

Interdependence

b)

Global Economy

c)

Free Market

d)

Competition

2.

Which of the following is a reason countries seek to participate in global trade?

a)

To increase competition in the domestic market

b)

To visit foreign countries

c)

To obtain goods they cannot produce themselves

d)

To create jobs in other countries

3.

Which of the following is a way global trade benefits domestic producers?

a)

It reduces the domestic demand for their goods and services

b)

It creates new jobs in other countries

c)

It reduces profitability

d)

It creates new markets for their goods and services

4.

Which of the following is a way consumers benefit from global trade?

a)

It results in less choice in the market place

b)

It lowers the prices of goods and services

c)

It increases unemployment benefits

d)

It results in fewer job opportunities

5.

Goods or services a country gets from another country are called?

a)

Imports

b)

Exports

c)

Products

d)

Profits

6.

A tax on any good or service coming into a country is called a .......?

a)

Tariff

b)

Subsidy

c)

Discount

d)

Profit

7.

Goods or services a country sells to another country are called?

a)

Imports

b)

Quotas

c)

Exports

d)

Profits

8.

Which of the following in not an impact of the application of tariffs and quotas EXCEPT for:

a)

They reduce the amount of trade between nations

b)

They protect domestic producers from foreign competition

c)

They create an incentive for countries to trade more with each other

d)

They reduce the amount of trade between nations

9.

The increase in international economic interdependence means that the economic conditions and policies in one nation increasingly affect economic conditions and policies in other nations. (True or False)

a)

True

b)

False

10.

A disadvantage of globalisation for Australian manufactures would include which one of the following?

a)

A less experienced workforce

b)

Low-cost competition from overseas firms

c)

Access to wider markets

d)

An increase in local salaries

11.

Which of the following is NOT a transnational corporation (TNC)?

a)

Facebook

b)

Tesla

c)

The local butcher

d)

Nestle

12.

Which of the following factors has not resulted in the acceleration of globalisation?

a)

The internet

b)

Trade agreements such as those established by the WTO

c)

The increase of unemployment in Australia

d)

Improvements in shipping and other transport

13.

What does MNC stand for?

a)

Multinational countries

b)

Multinational corporations

c)

Multilingual national conference

d)

Many new companies

14.

A focus on developing only certain skills or producing only certain goods/services is called?

a)

Specialisation

b)

Globalisation

c)

Desperation

d)

Interdependence

15.

When one person or group depends on or relies on another person or group, it is called?

a)

Interdependence

b)

Specialisation

c)

Free movement of people

d)

Devaluation

16.

The best name for a large company that has operations in more than one country could be called a?

a)

Multinational corporation

b)

Foreign corporation

c)

Domestic corporation

d)

State owned company

17.

Which body is responsible for overseeing international trade?

a)

Organisation for Economic Co-operation and Development (OECD)

b)

World Trade Organization (WTO)

c)

World Trade Authority (WTA)

d)

Asian Development Bank

18.

Which region of the world sends the most goods and services to Australia?

a)

Asia

b)

Europe

c)

USA

d)

Africa

19.

Competitive advantage in business refers to?

a)

How many likes a business gets on Facebook

b)

How a business make a profit

c)

An attribute or aspect of a business that allows it to outperform its competitors

d)

How much profit a business makes?

20.

Which of the following are types of competitive advantage?

a)

Cost leadership

b)

Differentiation

c)

Cost focus

d)

Large advertising budget