A company that operates in at least two different countries
In the USA Rosie sees some jeans costing $67 In London the same make of jeans costs £47.50 The exchange rate is still £1 = $1.34 Work out the difference between the cost of the jeans in the USA and in London. Give your answer in pounds
2.5 pounds
Give two examples of invisible trade
Trade of cleaning services and delivery services
How does fall in exchange rates influence imports?
Demand for imports decreases
What are economies of scale?
Fall in average prices with an increase in output
How does rise in exchange rates influence exports?
Demand for exports decreases
The exchange rate in London is £1 = €1.14 The exchange rate in Paris is €1 = £0.86 Elaine wants to change some pounds into euros. In which of these cities would Elaine get the most euros?
In London
State two drawbacks of multinationals to a country/economy
Environmental damage, lack of accountability
Jamie goes on holiday to Florida. The exchange rate is £1 = 1.70 dollars. He changes £900 into dollars. How many dollars should he get?
1530 pounds
What is invisible trade?
Trade in services
Rosie and Jim are going on holiday to the USA. Jim changes £350 into dollars ($). The exchange rate is £1 = $1.34 Work out how many dollars ($) Jim gets.
469 dollars
What is international trade?
Trade of goods between different countries
What is balance of trade?
Difference between visible exports and visible imports
State two benefits of becoming a multinational company
Larger customer base, higher recognition
State two benefits of multinationals to a country/economy
Increase in income, increase in tax revenue
What are imports?
Goods and services brought from overseas
Tania went to Italy. She changed £325 into euros (€). The exchange rate was £1 = €1.68. Change £325 into euros (€).
546 euros
What is exchange rate?
Value of one currency in terms of another currency
How does rise in exchange rates influence imports?
Demand for imports increases
What is visible trade?
Trade of physical goods
How does fall in exchange rates influence exports?
Demand for exports increases
What is surplus?
Amount of something that is more than needed or used
What are exports?
Goods and services sold overseas
Give two examples of visible trade
Trade of cars and electronics
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