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Terry
0450-18-O-N-12-3e
Chan
TOPIC QUESTION - PAPER 1
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Chan
June 16, 2021 at 10:21:58 PM
Oct/Nov 2018
Version 2
6.0 External Influences on Business Activity
6.3 Business and International Economy
YOUR ANSWER
Globalization enables import and exports between different countries. This enable TRB to expand its business into other countries. However, as TRB imports most components, cost may increase should the value of currency reduces. However, TRB will still have more opportunities than threats from globalization as it exports 40% of its products. Therefore a decrease in currency value will increase demand on exports as well.
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