Chapter 8 - Global Links

Question 1

appreciation

Answer 1

an upward movement of the Aus dollar (or any currency) against another currency

Question 2

bicultural

Answer 2

able to appreciate and understand the business practices and customs in the host country

Question 3

cultural diversity

Answer 3

the multitude of individual differences the exist among people

Question 4

depreciation

Answer 4

a downward movement of the Australian dollar (or any currency) against another currency

Question 5

domestic trade

Answer 5

economic transactions that take place within Australia

Question 6

e-commerce

Answer 6

the buying and selling of information, goods and services via the internet

Question 7

equities (shares)

Answer 7

ownership entitlements in a company

Question 8

exports

Answer 8

goods and services sold to another country

Question 9

foreign aid

Answer 9

financial and technical assistance by government and non-government (private) organisations from developed (high-income) nations to developing (low-income) nations

Question 10

foreign exchange rate

Answer 10

the ratio of one currency to another, it shows how much a unit of one currency is worth in terms of another

Question 11

free trade agreement

Answer 11

an agreement between countries that results in reductions in barriers to trade

Question 12

global consumer

Answer 12

a person who buys goods and services from other countries

Question 13

globalisation

Answer 13

the movement across nations of people, goods, money and ideas

Question 14

Gross Domestic Product (GDP)

Answer 14

the total value of all goods and services produced in an economy in a given year

Question 15

imports

Answer 15

goods and services bought from another country

Question 16

intellectual property

Answer 16

property that is created by an individual’s intellect; a song poem, novel and so on

Question 17

international (global) trade

Answer 17

the buying ands selling of goods and services between nations

Question 18

labour standards

Answer 18

those conditions that affect a business’s employees, or those in its supply chain

Question 19

managed fund

Answer 19

money from a large number of smaller investors pooled together and managed as one large investment portfolio by a professional investment manager.

Question 20

parent company

Answer 20

a company that owns or controls another company (subsidiary)

Question 21

political risk

Answer 21

any political event which has a negative impact upon business operations and profit

Question 22

subsidiary

Answer 22

a company owned and controlled by another company

Question 23

transnational (multinational) corporation (TNC)

Answer 23

a large business organisation that has a home base in one country, and operates business in other countries