6.3 Business and the International Economy IGCSE Business Studies

In this lesson I cover:

The importance of globalisation:
* 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
Reasons for the importance and growth of multinational companies (MNCs):

• 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
  The impact of exchange rate changes:
• Depreciation and appreciation of an exchange rate
• 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)

I have also included some questions to help students remember the key points.