Business and the international economy

What the syllabus asks of you

• The importance of globalisation: The concept of globalisation and the reasons for it
• The importance of globalisation: Opportunities and threats of globalisation for businesses
• The importance of globalisation: Why governments might introduce import tariffs and import quotas
• Reasons for the importance and growth of multinational companies (MNCs): Benefits to a business of becoming a multinational and the impact on its stakeholders
• Reasons for the importance and growth of multinational companies (MNCs): Potential benefits to a country and/or economy where a MNC is located, e.g. jobs, exports, increased choice, investment
• Reasons for the importance and growth of multinational companies (MNCs): Potential drawbacks to a country and/or economy where a MNC is located, e.g. reduced sales of local businesses, repatriation of profits
• The impact of exchange rate changes: Depreciation and appreciation of an exchange rate
• The impact of exchange rate changes: How exchange rate changes can affect businesses as importers and exporters of products, e.g. prices, competitiveness, profitability (exchange rate calculations will not be assessed)