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WorksheetsGRADE 11 INTERNATIONAL TRADE B.A.
Total questions: 20
Worksheet time: 12mins
Globalisation is best defined as
increased international trade as a result of free movement of goods and capital between countries
a situation where all of the world uses the same common currency
the growing trend for companies to stop making products within their own country
the increase in the world tourist industry leading to more global travel
One possible disadvantage to businesses of globalisation is that:
all products will become more expensive
there will be more international competition
there will be less choice and variety for their consumers
they will tend to produce on a small scale and this will raise costs
One possible opportunity for a business as a consequence of globalisation is:
able to sell products successfully in all foreign markets without changing the products
able to increase prices as there will be less competition
more likely to be able to create a monopoly
able to buy a wider range of imported materials and products
Free international trade’ means that:
goods can be transported between countries free of charge for ever
all countries use the same currency so it does not cost anything to convert currencies
there are no tariffs or quotas to limit trade between countries
businesses can produce in any country without any legal controls
The most likely reason why some governments impose tariffs on imported goods is:
to reduce the rate of inflation
to increase employment in foreign countries
to reduce the Balance of Payments
to increase output in their own countries
The difference between import tariffs and quotas is:
tariffs are a tax on locally produced goods but quotas limit the quantity of imports
tariffs are a tax on imports and quotas are a tax on exports
tariffs are a tax on imports and quotas limit the quantity of imports
tariffs are a tax on all products but quotas just limit the quantity of imports
A definition of a multinational business is one that:
has a foreign sounding name
imports goods from one country and exports them to another one
exports goods to many different countries
has factories or operations in more than one country
One advantage to the business of becoming a multinational is that:
it will be able to produce goods closer to each country’s market
it will have fewer factories and operating bases
communication will be easier within the business
it will tend to produce the same basic product for markets throughout the world
A manufacturing firm based in country C buys in raw materials from country A and sells the finished goods to country B. The firm could gain if country C’s currency:
depreciated against both other currencies
depreciated against currency A but appreciated against currency B
appreciated against currency A but depreciated against currency B
appreciated against both currencies
When an exchange rate of a currency depreciates, the following will be likely to happen:
import prices will fall and export prices will rise
export sales will fall and import purchases will increase
export prices will fall and import prices will rise
prices of all products will not change
When an exchange rate of a currency depreciates it means that:
one unit of it buys more of a foreign currency than before
the price level in that country has fallen
one unit of it buys less of a foreign currency than before
the country’s exports will become more expensive
The definition of the exchange rate of a currency is:
the price level in the country
the rate at which imports can be bought from export revenue
the price of one currency in terms of how much it buys of another
the price of a currency in terms of the goods that can be bought with it
An export can be defined as any product that is:
made from goods bought from another country
sold to another country
bought from another country
made in another country
One potential disadvantage for a country of encouraging a multinational business to set up is that:
jobs might be lost in existing national businesses
tax revenue to the government will fall
these companies never export any products from the countries they operate in
costs of production are likely to be high and this will raise prices
One potential advantage for a country of encouraging a multinational business to set up is that it will:
always create more jobs than might be lost
keep all of the profits made within the country
not compete with the existing national businesses
pay taxes to the government
WHAT IS THE LETTER KNOWN AS ON WHICH THE IMPORTER DESCRIBES THE DETAILS OF THE ORDER
INPUT
OGL
L/C
INDENT
WHO ISSUES THE BILL OF LADING TO THE EXPORTER
INSURANCE COMPANY
SHIPPING COMPANY
THE CAPTAIN OF SHIP
BANK
NAME THE CERTIFICATE THAT STATES THE COUNTRY IN WHICH THE GOODS WERE PRODUCED
(a)
who issues the shipping order?
(a)
(a) BANK HOLDS THE CONTROL OVER FOREIGN EXCHANGE IN INDIA.
