Globalisation

Question 1

What is globalisation, how has it come to be?

Answer 1

Advances in technology have made international transport possible

Question 2

What is the effect of globalisation

Answer 2

business develops influence internationally
trend for market to become worldwide

Question 3

Outsourcing

Answer 3

obtaining goods/services from external supplier

Question 4

Benefits of globalisation

Answer 4

increased markets
sell at cheaper costs

Question 5

Drawbacks of globalisation

Answer 5

Facing competition from other global businesses
Firms become powerful with global brands

Question 6

Exchange rates

Answer 6

businesses trade with customers and suppliers in other countries.

Question 7

What does exchange rate affect

Answer 7

changes to exchange rate will affect the prices that have to be paid and money that can be earned from overseas trade

Question 8

benefits of a country’s currency becoming stronger

Answer 8

Price of imports decrease for consumers
businesses will be able to buy more raw materials for same price

Question 9

disadvantages of a country’s currency becoming stronger

Answer 9

local business can’t compete against cheap imports
goods become expensive for export

Question 10

benefits of country’s currency becoming weaker

Answer 10

goods become cheaper for exports
local business compete against cheaper import

Question 11

disadvantages of a country’s currency becoming weaker

Answer 11

price of imports increase for consumers
price of raw materials will increase