1.5 Globalisation, multinationals, exchange rate

What is globalisation?

Increase in cross border flow of goods and services

Reasons of globalisation?

Development of tech, tourism, transport

What does saturated mean?

Max amount of product/service in market, no new customers

Opportunities part of globalisation

Larger markets, lower costs of production, more labour, less tax

Threats part of globalisation

Competition, more risk

International trade opportunity

Growth, increases competition, consumer choice

Invisible trade

Tourism, education, services

Formula: your currency into foreign currency

Foreign currency= currency x exchange rate

Formula: foreign currency into yours

currency=foreign currency/exchange rate

Fall in exchange rate

Depreciation

Rise in exchange rate

Appreciation