Globalisation
A *MNC* is a company which conducts business in more than one _______ ________.
Foreign country
A Manager opens a store in a foreign country. Which country's laws must they follow? Host country or Home country or BOTH?
Host country
exchange rate fluctuations, as price of one currency appreciates, the other currency __________.
depreciates
An example of international business activity is: ________ and _______
import and export
Three types of Economic systems are: ____ ______, ________ and ______
Free Market, planned and mixed
Which is NOT an example of a driving force leading Globalisation? Market Geo-politics Global Institutions OR Technology
Global institutions
International trade VS. International investment:
*International trade*- When a firm engages in export/import of goods and services. *International investment*- When a firm transfers resources to undertake business activities in another country.
Companies can go to this International market to obtain external financing: _________ _________
Capital Market
Advantage of using joint venture as entry mode: It's a great way of dealing with ________ __________.
cultural restrictions
This International institution includes: Indonesia, Malaysia and Singapore, aimed at promoting security and economic integration: _______
ASEAN
Areas in technology which helped fuel *Globalisation* are: Internet/WWW, Telecommunications, __________ and ___________ (Any two)
transportation and production
MNC's might claim that: They transfer technological wealth to other countries AND provide _____ for local people
jobs (both are correct!)
If a trade deficit exists for a country, what can be done to the exchange rate to shrink the deficit?
Depreciation of the country's currency would ______ the cost of imported goods, and also ________ the cost of exported goods. *explain*
This international institution is responsible for stable financing and economic growth:
The IMF
Trading Blocs include the following: Free Trade Areas, Economic Unions, Common Markets and ________ _______
Customs Unions
Companies and governments of different nations integrate and become interdependent... *Examples* (name 2) Market Geo-politics Costs _________ AND _______
competition and technology
An example of a host country complaint regarding MNC's is: Profit-taking restrictions or Foreign Exchange controls or overpriced resources?
Profit-taking restrictions
If a country wants to increase growth of foreign capital into its economy it can: De-regulate industries, have a stable government, and open borders to _______ _____ _________
negotiate trade agreements
Elimination of import tariffs would benefit customers by: As import tariff decreases, overall cost of goods should _________. (consumers benefit)
decrease
This was NOT a major factor that led to the Global Financial Crisis: Fed Reserve set low interest rates, Defaults on mortgages, Credit markets loosened OR Unemployment rate jumped.
Unemployment rate jumped
Define four of the six defining technologies of globalisation: Computerisation, Miniaturisaton, Digitisation, Satellite, _____ ______ and ___ ______.
Fibre Optics and the Internet
*The intranet has helped MNC's* by:
The intranet has helped MNC's by __________.
Difference between agents and distributors is: *Agents* are __________ and *distributors* are: __________.
*Agents:*
*Distributors:*
1st general agreement on tariffs and trade in 1947 helped growth by: manufactured goods dropped, which promoted trade between _____ _______.
many countries
What is the difference between *GDP* and *GNP?*
*GDP* - measures goods/services based on time period(one year), *GNP*- measures goods/services based on ownership. Explain