Understanding Globalisation and Trade

What is the primary definition of globalisation?

• The movement of goods, people, or business investments within a single country.

• The movement of goods, people, or business investments between countries.

• The restriction of trade and communication between countries.

• The development of local businesses without foreign influence.

Which of the following is NOT a factor contributing to the increase in globalisation?

• Improvements in communication and transportation technologies.

• Trade agreements and government policy.

• Decreasing income levels.

• The rise of multinational businesses.

How has globalisation enabled businesses to cut costs?

• By increasing tariffs on imports.

• By moving parts of their production to lower-cost areas.

• By reducing the quality of their products.

• By hiring more local employees.

What is a potential negative effect of globalisation on businesses?

• Decreased global competition.

• Increased likelihood of diseconomies of scale.

• Reduced need for research and development.

• Lower ethical standards in developed countries.

What is the process of selling goods or services to stakeholders in other countries called?

• Importing.

• Exporting.

• Globalising.

• Localising.

Which of the following factors affects the number of exports a country can achieve?

• Domestic inflation rates.

• International competitiveness in the global market.

• Local employment rates.

• National tax policies.

What is the effect of a weaker pound (£) on exports?

• It makes UK goods and services more expensive for foreign customers.

• It makes UK goods and services cheaper for foreign customers.

• It has no effect on the price of UK goods and services.

• It increases tariffs on UK exports.

What is the process of purchasing goods/services/raw materials from other countries called?

• Exporting.

• Importing.

• Globalising.

• Localising.

Which of the following is a reason why businesses might choose global supply chains?

• Higher labour costs abroad.

• Limited availability of resources abroad.

• Consistent supply volumes from specialised countries.

• Increased domestic competition.

What is a common reason for multinational companies to source materials from multiple countries?

• To increase production costs.

• To take advantage of lower minimum wages.

• To reduce product quality.

• To limit global demand.