3.2.4 Globalisation

What is one way UK businesses compete internationally?

• By limiting product availability

• By offering better designs

• By increasing local taxes

• By reducing employee wages

What is a benefit of globalisation for UK businesses?

• Increased isolation

• Higher import tariffs

• Access to a larger market

• Reduced competition

What is a drawback of globalisation for UK businesses?

• Increased competition

• Lower quality products

• Limited market access

• Higher local demand

How do exchange rates impact UK businesses?

• They affect profit and sales

• They determine employee salaries

• They set local tax rates

• They control product design

What are students not required to do regarding exchange rates?

• Understand their impact

• Know their effect on imports

• Recognize their influence on exports

• Calculate exchange rate conversions

What is a potential impact of globalisation on UK employment?

• Decreased need for skilled labor

• Higher unemployment rates

• Increased job security

• More local job opportunities

How can UK businesses benefit from changes in exchange rates?

• By limiting international trade

• By stabilizing local currency

• By increasing import costs

• By reducing export prices

What is a strategy UK businesses might use to mitigate risks of globalisation?

• Increase local advertising

• Reduce product quality

• Invest in international partnerships

• Focus solely on domestic markets

What is a common challenge UK businesses face due to globalisation?

• Increased local demand

• Higher production costs

• More regulatory compliance

• Reduced access to technology

What is a potential benefit of a strong domestic currency for UK importers?

• Lower import costs

• Higher export prices

• Reduced market access

• Increased local competition