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IGCSE Business Studies           Student CD-ROM



            Impact on businesses of changes in the exchange rate


                                             Appreciation of     Depreciation of
                                              exchange rate       exchange rate



                                                 Imports          Imports become
                                              become cheaper       more expensive



                                              Exports become      Exports become
                                              more expensive         cheaper
                                                 overseas            overseas




            Effect of multinationals on the host country


                                                     Effect of MNCs on
                                                       host country



                                                Positive        Negative




                                                   Improves      Environmental
                                                  infrastructure   damage


                                                Generates income  Exploitation of
                                                  in form of tax    labour


                                                                   Increased
                                                   Increases     competition for
                                                  employment
                                                                 local companies

                                                   Improves
                                                   country’s      Social impact
                                                   reputation


                                                Increased choice   Exploitation of
                                                 of goods and   natural resources
                                                   services




























            © Cambridge University Press 2014  IGCSE Business Studies                    Section 6 – Mind maps  5
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