2.4 Globalisation Flashcards
Define globalisation.
Globalisation is the trend for markets to become worldwide in scope.
Define international trade.
International trade is the selling of goods and services across national borders.
What are exports?
Exports are goods and services produced by a business in one country and sold in another.
What is a tariff?
A tariff is a tax on foreign goods imported into a country.
What are some of the benefits of globalisation?
- Rapid growth- opportunities in overseas markets.
- Cheaper resources.
What is a drawback of globalisation?
UK businesses are exposed to fierce competition from overseas firms as a consequence of globalisation. This can place them under pressure to sell at lower prices.
How do UK businesses compete internationally?
- Improve the design of their products.
- Offer a fair price for their products.
Define exchange rate.
An exchange rate is the price of one currency expressed in terms of another.
What does a rise in exchange rate mean?
If the exchange rate of the pound rises against other currencies, it means that fewer pounds are needed to purchase goods and services from other countries.
What does a fall in exchange rate mean?
If the exchange rate of the pound falls against other currencies, imports to the UK become more expensive as more pounds are required to buy a unit of the foreign currency.
What are imports?
Imports are goods and services purchased from overseas customers.
