topic 6

Question 1

What is the international monetary fund?

Answer 1

An international body comprising 190 (or 191) countries involved in economic matters including exchange rates

Question 2

What does the international monetary fund describe its aims to be?

Answer 2

To ensure stability of the international monetary system - the system of exchange rates and international payments that enables countries and their citizens to transact with each other.

Question 3

What are the criticism of globalisation?

Answer 3

• Undermines the local culture and results in depersonalisation
• leads to the emergence of very large multinational companies which dominate markets and lead small businesses to fail.

Question 4

What is outsourcing?

Answer 4

The process of one provider paying another to carry out certain functions that it previously performed itself.

Question 5

What is the benefit of outsourcing?

Answer 5

The provider can focus on the core functions of the business (eg investment fund management or insurance underwriting)

Question 6

What is offshoring?

Answer 6

The practice of moving some of a company’s operational functions to overseas locations.