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Business Studies IGCSEPDF 174
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6.3 Business and the international economy
6.3.1 The importance of globalisation:
6.3.2 Reasons for the importance and growth of
multinational companies (MNCs):
6.3.3 The impact of exchange rate changes:
The concept of globalisation and the reasons
for it
Opportunities and threats of globalisation for
businesses
Why governments might introduce import tariffs
and import quotas
Benefits to a business of becoming a
multinational and the impact on its stakeholders
Potential benefits to a country and/or economy
where a MNC is located, e.g. jobs, exports,
increased choice, investment
Potential drawbacks to a country and/or
economy where a MNC is located, e.g. reduced
sales of local businesses, repatriation of profits
Depreciation and appreciation of an exchange
rate
How exchange rate changes can affect
businesses as importers and exporters of
products,
@.g. prices, competitiveness, profitability
(exchange rate calculations will not be
assessed)