Globalisation

Question 1

Benefits to the business in going multinational

Answer 1

Lack of legal constraints - lower wages
Enter new markets - less competition exists

Question 2

Benefits to the host country of a multinational business establishing operations in the country

Answer 2

Provides jobs
Equips the local people with skills
Leads to investment in local infrastructure- roads

Question 3

Negative effects of a multinational business in host country

Answer 3

Competes with Local businesses
Environmentally pollutes the host country
Exploites the workers

Question 4

What are some challenges of globalisation

Answer 4

Increased competition
Understanding customers ethical standpoints
Costs of expansion
Adapting to different cultures

Question 5

Why do countries trade internationally

Answer 5

For variety - countries can obtain products they wouldn’t be able to get themselves
Growth- access to millions of new customers
Specialisation-a country is able to specialise in what it does best
Avoiding conflict-countries are less likely to fight as they are economically dependent on one another

Question 6

What are tarrifs , quotas and when do trade deficits occur

Answer 6

A trade deficit occurs when a countries imports is higher than its exports

A quota is a limit on how much of a good can be brought into the country

A tariff is a tax on imports

Question 7

What are some positives around the EU

Answer 7

Prevents conflict
Easy travel , good healthcare
Variety of goods and services
Creation of new jobs

Question 8

What are some negatives around the EU

Answer 8

more transparency is needed with other countries within the EU

Have to pay money to the EU - expensive