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6.2. Business and the international economy

Syllabus
0264–2027–2028
Topic
6.2
Level
—

6.2.1—The importance of globalisation

  • reasons for globalisation: improved transport links, technological change including communication, free trade agreements, newly industrialised countries
  • opportunities and threats of globalisation for businesses
  • import tariffs and import quotas
  • effects of import tariffs and import quotas on businesses

6.2.2—Multinational companies (MNCs)

  • advantages to a business of becoming an MNC
  • advantages for the country where an MNC is located, e.g. jobs, exports, increased choice, investment
  • disadvantages for the country where an MNC is located, e.g. increased competition, environmental damage, exploitation of natural resources, repatriation of profits

6.2.3—External costs and benefits

  • external costs and external benefits of business decisions

6.2.4—Exchange rates

  • appreciation and depreciation of an exchange rate
  • how changes in exchange rates can affect businesses which import and export products and services, e.g. price, costs, competitiveness Note: candidates will not be assessed on exchange rate calculations.

Objective notes

4 learning objectives
ConceptIGCSE Business Studies