Business And The International Economy
Muhtasari
A clothes retailer in London sources cotton from India, assembles garments in Bangladesh and sells finished products to customers across Europe. That single supply chain crosses three continents, multiple currencies and several trade agreements. Understanding how businesses operate in this interconnected world is essential for any student of business studies.
In this lesson you will explore globalisation and why it matters, examine the role of multinational companies, learn how to calculate and interpret exchange rates, and analyse the impact that currency changes have on importers and exporters. These ideas run through both Paper 1 and Paper 2 of the Edexcel specification.
Malengo
- Understand the concept of globalisation and the opportunities and threats of globalisation for businesses
- Understand the importance and growth of multinationals: benefits of a business becoming a multinational, benefits and possible drawbacks to a country and/or economy where a multinational is located
- Calculate exchange rates
- Understand the impact of exchange rate changes on international competitiveness and on importers and exporters
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- Which of the following best describes globalisation? A) A government policy to reduce imports B) The increasing integration of the world's economies through trade and capital movement C) A method of calculating exchange rates D) The process of a business expanding within its home country Answer: B
- A country's currency depreciates. What is the most likely effect on its exporters? A) Their products become more expensive abroad B) Their products become cheaper abroad C) There is no effect on exports D) They must pay higher import tariffs Answer: B
- Which of the following is a benefit to a host country when a multinational locates there? A) Profits are sent back to the MNC's home country B) Local businesses face less competition C) New jobs are created for local workers D) The government loses tax revenue Answer: C
- If GBP 1 = EUR 1.15, how many euros would a UK business receive for GBP 2,000? A) EUR 1,739 B) EUR 2,300 C) EUR 2,000 D) EUR 1,150 Answer: B
- Which of the following is a threat of globalisation to a domestic business? A) Access to larger markets B) Economies of scale C) Increased competition from foreign firms D) Lower transport costs Answer: C
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Vitabu Vinavyopendekezwa
Jifunze zaidi kutoka vyanzo huria
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Sehemu ya kitabu
The Impact of Multinational Corporations
What are the advantages of multinational corporations?
"Introduction to Business: The Impact of Multinational Corporations" by OpenStax, OpenStax, Rice University, licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). Source: https://openstax.org/books/introduction-business/pages/3-8-the-impact-of-multinational-corporations. Access for free at https://openstax.org/books/introduction-business/pages/1-introduction
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Sehemu ya kitabu
Threats and Opportunities in the Global Marketplace
What threats and opportunities exist in the global marketplace?
"Introduction to Business: Threats and Opportunities in the Global Marketplace" by OpenStax, OpenStax, Rice University, licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). Source: https://openstax.org/books/introduction-business/pages/3-7-threats-and-opportunities-in-the-global-marketplace. Access for free at https://openstax.org/books/introduction-business/pages/1-introduction
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