The wider world

Question 1

What are external factors?

Answer 1

Factors influencing a business that are outside the control of the business

Question 2

Define interest rates

Answer 2

The price of borrowing money

Question 3

Define globalisation

Answer 3

The move by businesses to operating on a global scale

Question 4

What are multinationals (TNCs)?

Answer 4

Businesses with operations in several different countries

Question 5

Define global brands

Answer 5

Brands that are recognised all over the world, e.g. McDonald’s, Coca-Cola

Question 6

Define exchange rates

Answer 6

The price of one currency to other countries

Question 7

What is the European Union?

Answer 7

A ‘club’ of 27 member states that act and trade together

Question 8

Define single European market

Answer 8

Within EU borders, goods and labour are free to move as if there were no borders

Question 9

What is trading bloc?

Answer 9

Countries that gain trading power by trading as one group

Question 10

What is harmonisation?

Answer 10

Making things the same in all member countries