2f) Global issues part 1

Question 1

What are overseas competitors?

Answer 1

Overseas competitors are
businesses located in other
countries that operate in the
same or similar industry and
offer a similar good or service.

Question 2

What is offshoring labour?

Answer 2

Offshoring labour is moving a
business’s services or processes to
another country.

Question 3

What is an exchange rate?

Answer 3

An exchange rate is the rate at
which the money of one country
can be exchanged for the money
of another country.

Question 4

what is this example about?
Each month, Stanley imports gourmet salad dressings in bulk from the United States.
Due to a depreciating Australian dollar, this makes importing from the United States more
expensive for Stanley. For example, one Australian dollar currently buys only 0.70 United
States dollars. As Stanley orders $500 worth of salad dressings in Australian dollars, this
ultimately costs him $714.

Answer 4

Exchange rates