International Trade and Globalisation

What is the definition of international trade?

• Exchange of goods and services between countries

• Trade within a single country

• Bartering goods without currency

• Selling goods at a local market

Which of the following is an advantage of international trade?

• Higher transport costs

• Bigger market/increase brand awareness

• Language problems in trading

• Trade barriers

Identify a disadvantage of international trade.

• Economies of scale

• Wider range of customers

• Higher transport costs

• Exchange rate fluctuations may benefit

What is the definition of a multinational business?

• A multinational business is a company that operates in multiple countries, managing production or delivering services in more than one nation.

• A multinational business is a company that operates only within its home country.

• A multinational business is a company that focuses solely on online sales.

• A multinational business is a company that only exports goods without any local operations.

Which of the following is an advantage of a multinational business?

• Size of business

• Language barriers

• Well known around world

• Negative public image

Identify a disadvantage of a multinational business.

• Easier to compete on foreign markets

• Economies of scale

• Lower production costs

• Size of business

What is the definition of a tariff?

• A tariff is a tax imposed by a government on imported goods.

• A tariff is a type of international trade agreement.

• A tariff is a subsidy given to local businesses.

• A tariff is a regulation on domestic production.

What is the definition of imports?

• The definition of imports is the goods and services brought into a country from abroad for sale.

• The definition of imports is the goods and services sent out of a country for sale.

• The definition of imports is the process of manufacturing goods within a country.

• The definition of imports is the exchange of goods and services within a country's borders.

What is the definition of exports?

• exports

• imports

• tariffs

• quotas

The impact of exchange rate fluctuations on international trade is:

• Negligible

• Significant

• Non-existent

• Minimal