Lesson 3.9.3

3.9.3 Assessing globalisation and internationalisation Quiz: AQA Business, Unit 9

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

Lesson 3.9.3, Assessing globalisation and internationalisation: 20 multiple choice questions for the AQA Business (7132), Unit 9: Strategic methods: how to pursue strategies, written with Revision Ninja.

Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.

Host this setFree Play

The 20 questions

  1. What is globalisation?

    • A system in which a single government controls all of the production in every country in the world
    • A policy under which each country restricts all trade with other nations to protect its own industries
    • The increasing integration of national economies and markets through trade, investment and communication
    • The movement of workers from rural areas to cities within a single country during the course of its growth

  2. What are emerging economies?

    • Economies that are fully developed and have had no growth in output or income for many decades
    • Economies that are growing rapidly, often industrialising, and becoming more important to global business
    • Economies that only trade with one other country and have no contact with the wider world market
    • Economies that have stopped growing and are now in a long period of decline with no new investment

  3. Which is a reason for the greater globalisation of business?

    • Rising trade barriers across all major economies, which have restricted cross-border sales for many years
    • A reduction in the number of countries trading with each other as a result of political isolation
    • A decision by every government to close its borders to foreign investment and foreign trade
    • Falling trade barriers and improvements in transport and communication technology

  4. Which method of entering an international market involves selling goods made at home to customers abroad?

    • Licensing
    • Exporting
    • Strategic alliance
    • Direct investment

  5. Which method involves allowing a foreign firm to use a business's intellectual property in return for royalties?

    • Direct investment
    • Licensing
    • Exporting
    • Off-shoring

  6. What is a strategic alliance as a method of entering international markets?

    • A full takeover of a foreign firm, after which the acquirer becomes the sole owner of its operations
    • A government agreement that limits the number of imported goods allowed into the home market
    • A partnership with a foreign firm that shares resources and risks while keeping the partners legally separate
    • A decision to sell products only through a single foreign distributor with no shared resources or investment

  7. What is direct investment as a method of entering a foreign market?

    • Setting up or buying production or sales facilities in the foreign country, such as a subsidiary
    • Selling goods through an agent who has no shares in the business and no permanent presence in the country
    • Allowing a foreign firm to make the product in return for a royalty payment on each unit it sells
    • Sending goods overseas through a freight company that handles the transport on behalf of the firm

  8. What is off-shoring?

    • Importing raw materials from a foreign country and using them to make goods sold at home
    • Moving production or services to another country, usually to reduce costs
    • Bringing production back to the home country from overseas to shorten supply chains
    • Selling goods to customers in a foreign country without any production taking place in that country

  9. What is re-shoring?

    • Selling products only in the home market and stopping all exports to foreign customers each year
    • Bringing production back to the home country after it had been moved overseas
    • Setting up a new subsidiary in a foreign country that will supply goods to the home market
    • Moving production to a different overseas country that has lower wages than the firm's current location

  10. What is a multinational business?

    • A business that trades only through the internet and has no physical presence in any country
    • A business that operates in several countries and manages production or sales across national borders
    • A business that operates only in its home country but has customers in many foreign countries
    • A business that is owned by a government and operates only in the public sector in one country

  11. A UK firm exports 10,000 units at 20 US dollars each, and 1 pound equals 1.25 dollars. What is the revenue in pounds?

    • 160,000 pounds
    • 125,000 pounds
    • 250,000 pounds
    • 200,000 pounds

  12. A firm can produce a product using labour costing 15 pounds an hour at home or 5 pounds an hour abroad. It uses 10,000 labour hours. What is the saving from off-shoring?

    • 100,000 pounds
    • 150,000 pounds
    • 10,000 pounds
    • 50,000 pounds

  13. Which factor is most likely to affect the attractiveness of an international market?

    • The total number of countries that are members of the same football league in the region
    • The colour of the national flag that appears on the packaging of goods sold in the market
    • The average height of the population in the region where the business is considering setting up
    • Market size and growth, together with political stability and trade barriers such as tariffs

  14. Which evaluation is most accurate of licensing compared with direct investment?

    • Direct investment is always cheaper than licensing because it avoids any need for capital spending abroad
    • Licensing and direct investment carry exactly the same level of risk and control in every foreign market
    • Licensing is lower risk and capital-light, but the firm gives up control and a share of the revenue
    • Licensing gives the firm full control of every foreign operation with no shared revenue or risk at all

  15. Which factors influence buying, selling and producing abroad?

    • The weather in the home country, which has a direct effect on the costs of overseas production
    • The number of employees in the firm's head office, which determines the cost of foreign sales
    • The colour of the packaging used by the firm for its products in the home market only
    • Exchange rates, cultural differences and local laws and regulations

  16. What is the pressure for local responsiveness in managing an international business?

    • The need to adapt products, marketing and operations to the tastes and rules of each local market
    • The need to avoid any contact with local customers, so that the firm can concentrate on its own operations
    • The need to standardise every product across all countries so that a single global design is sold everywhere
    • The need to reduce total costs by producing the same product in one location for all markets worldwide

  17. What is the pressure for cost reduction in managing an international business?

    • The need to lower costs by standardising products and producing at scale in the most efficient locations
    • The need to increase advertising in every market so that local customers become more aware of the brand
    • The need to increase the number of local managers in each country so that decisions are made locally
    • The need to adapt each product to local tastes so that each market receives a different product design

  18. Evaluate the trade-off between local responsiveness and cost reduction for a multinational.

    • There is no trade-off because the same product is always the best choice for every country in the world
    • Adapting to each market raises costs, but ignoring local needs may lose customers, so the firm must balance the two pressures
    • Cost reduction always harms customers because global standardisation makes products worse for every market
    • Local responsiveness always reduces costs because adapting products to each market is cheaper than standard designs

  19. Why are emerging economies important for a business's growth strategy?

    • They offer rapidly growing demand and a rising middle class of consumers, alongside lower production costs in some cases
    • They only buy from domestic suppliers and never import goods, which makes them impossible to enter
    • They offer falling demand as populations decline and governments restrict all new foreign investment in each sector
    • They have no consumers with any spending power, so businesses cannot sell goods to them in any quantity

  20. Evaluate the case for re-shoring production to the home country.

    • It can improve quality control, shorten lead times and reduce some risks, but labour and other costs may be higher
    • Re-shoring is illegal in most countries, so firms cannot bring any production back from overseas locations
    • Re-shoring always lowers costs, because domestic labour is always cheaper than labour in any overseas location
    • Re-shoring removes all risk, because a home-based firm faces no political or currency risks at all

All AQA Business quizzes