Business and the international economy: แบบฝึกหัด

Which of the following is a possible drawback for a country hosting a multinational company (MNC)?

A Japanese multinational company wants to convert \(¥5,000,000\) into Euros (\(€\)). If the exchange rate is \(€1 = ¥160\), how much will the company receive in Euros?

If a multinational corporation moves its headquarters to a country with lower corporate tax rates, this is an example of responding to which type of international influence?

What is defined as the process by which businesses or other organisations develop international influence or start operating on an international scale?

A multinational corporation (MNC) decides to relocate its manufacturing plant to a developing country. What is a likely benefit for the MNC?

What is meant by the term globalisation in a business context?

Identify and explain one potential drawback for a developing country when a large multinational corporation (MNC) establishes a factory there.

Explain how a significant appreciation of a country's currency is likely to affect the profit margins of its domestic businesses that rely heavily on exporting goods abroad.

Part a: Define the term globalisation. (2 points)

Part b: A large multinational corporation (MNC) plans to open a new manufacturing facility in a developing country. Explain two possible benefits to the economy of the country where the MNC chooses to locate. (3 points)

An Australian winery exports premium bottles of wine to the United Kingdom. The price of one bottle is set at \(40\) AUD.

Part a: Calculate the price of one bottle in British Pounds (GBP) if the exchange rate is \(1\text{ AUD} = 0.52\text{ GBP}\). (1 point)

Part b: If the Australian Dollar appreciates and the new exchange rate becomes \(1\text{ AUD} = 0.60\text{ GBP}\), calculate the new price in GBP. (1 point)

Part c: Using your calculations, explain how this change in the exchange rate is likely to affect the winery's international competitiveness in the UK market. (3 points)