Question 1

Which of following best describes the term exchange rate?

Accepted Answer

The price of one currency against another

Answer

The profit made from exporting goods and services

Answer

The reward for saving money and cost of borrowing money

Answer

The sales made from importing goods and services

Question 2

Which of the following is true in relation to a UK exporter?

Accepted Answer

A UK exporter wants a weak pound

Answer

A weak pound makes UK exports more expensive abroad

Answer

A strong pound makes UK exports cheaper abroad

Answer

A UK exporter wants a strong pound

Question 3

Which of the following is an example of an UK export?

Accepted Answer

A car made in the UK sold to a business in Spain

Answer

A car made in the USA sold to a business in Germany

Answer

A car made in the UK sold to a business in the UK

Answer

A car made in Italy sold to a business in the UK

Question 4

Which of the following is true if a country’s currency becomes stronger?

Accepted Answer

Bad for a business that exports as goods are more expensive overseas

Answer

Bad for consumers as prices of imports will increase

Answer

Bad for a business that imports raw materials as prices will increase

Answer

Bad for a business that exports as goods are less expensive overseas

Question 5

Which of the following is an example of an UK import?

Accepted Answer

A mobile phone made in China is sold to UK customers

Answer

A car made in the UK is sold to customers in Germany

Answer

A kettle made in the UK is sold to UK customers

Answer

A TV made in Spain is sold to customers in Spain

Question 6

Which of the following is true for a UK exporter of goods to Portugal when the pound becomes stronger against the euro?

Accepted Answer

Exports will become more expensive

Answer

Exports sales are likely to increase

Answer

Profits are likely to increase

Answer

Exports will become less expensive

Question 7

Which of the following is a benefit to UK businesses of globalisation?

Accepted Answer

Access to new and bigger markets

Answer

Increased competition can lead to business failure

Answer

Multinational firms have become very powerful

Answer

Being vulnerable to the world economic climate

Question 8

Which of the following businesses is acting as an exporter?

Accepted Answer

A UK based car manufacturer sells cars to the Japanese market

Answer

A UK retailer buys goods from overseas suppliers to sell in the UK

Answer

A UK supermarket buys milk from UK farmers to sell in its UK stores

Answer

A UK confectionary business buys cocoa from abroad to produce chocolate bars in the UK

Question 9

Which of the following is true for a UK importer of goods from Italy if the value of the pound becomes weaker against the euro?

Accepted Answer

Sales decrease and profit decreases

Answer

Sales increase and profit increases

Answer

Sales decrease and profit increases

Answer

Sales increase and profit decreases

Question 10

Which of the following is true for a UK business operating in a global market?

Accepted Answer

Cheaper land may be available abroad on which to build factories

Answer

Good publicity if UK production jobs are lost to other countries

Answer

Cost reductions could lead to lower profits

Answer

Less expensive to transport goods to the end consumer

Question 11

Which of the following best describes the term globalisation?

Accepted Answer

The process by which the world is increasingly one market

Answer

Goods purchased from overseas by UK businesses and consumers

Answer

When goods and services are made in one country and sold in another

Answer

When a business produces goods in more than one country

Question 12

Which of the following is a drawback to UK businesses of globalisation?

Accepted Answer

Increased competition from overseas businesses

Answer

Costs can be reduced through the use of cheaper labour

Answer

Access to cheaper raw materials

Answer

Opportunity to increase sales

Question 13

Which of the following is true if a country’s currency becomes weaker?

Accepted Answer

Good for a business that exports as its goods will become cheaper

Answer

Good for a business that exports, as its goods become more expensive

Answer

Good for consumers, as prices of imports will increase

Answer

Good if a business imports raw materials, as prices increase

Question 14

Which of the following is true for a UK exporter of goods to the USA when the pound becomes weaker against the dollar?

Accepted Answer

Exports become cheaper

Answer

Profits are likely to decrease

Answer

Export sales are likely to decrease

Answer

Exports become more expensive

Question 15

Which of the following best describes the term imports?

Accepted Answer

Goods purchased from overseas by UK businesses and consumers

Answer

Goods purchased by UK businesses from other UK producers

Answer

Goods produced by a business in one country and sold in another

Answer

Goods produced by UK businesses and purchased by other UK businesses

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