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Q: 1(i)

Strategic risks
These affect your firm’s ability to reach the goals in the business plan. They could be
due to the impacts of changes in technological evolutions or customer demand.
These factors could pose as threats as they can alter how customers perceive your
product. Based on these, customers might think a product is overpriced, dull and
 Innovation
Your business needs innovation in order to keep up with competitors. It is essential
to get one step ahead. Innovation could come in the form of marketing. It could also
be through promotional initiatives in the marketing plan, staff training, and welfare.
Embracing new technology is the best way to keep up with technological
Q: 1(ii)

A multinational corporation (MNC) or multinational enterprise[1] is an organization that owns

or controls production of goods or services in one or more countries other than their home
country.[2] It can also be referred as an international corporation, a "transnational corporation",
or a stateless corporation.[3]

Q: 1(iv)

Privatization is the process of transferring an enterprise or industry from the public sectorto
the private sector.

The public sector is the part of the economic system that is run by government
agencies. Privatization may involve either sale of government-held assets or removal of
restrictions preventing private individuals and businesses from participating in a given

Q: 1(v)

In economics and political science, fiscal policy is the use of governmentrevenue collection
(mainly taxes) and expenditure (spending) to influence the economy.[1] According to Keynesian
economics, when the government changes the levels of taxation and governments spending, it
influencesaggregate demand and the level of economic activity. Fiscal policy can be used to
stabilize the economy over the course of the business cycle
Q: 4

International trade is the exchange of capital, goods, and services acrossinternational

borders or territories, which could involve the activities of the government and individual. [1] In
most countries, such trade represents a significant share of gross domestic product (GDP).
While international tradehas been present throughout much of history (see Silk Road, Amber
Road,salt road), its economic, social, and political importance has been on the rise in recent
centuries. It is the presupposition of international trade that a sufficient level
of geopolitical peace and stability are prevailing in order to allow for the peaceful exchange of
trade and commerce to take place between nations.

Trading globally gives consumers and countries the opportunity to be exposed to new markets
and products. Almost every kind of product can be found on the international market: food,
clothes, spare parts, oil, jewelry, wine, stocks, currencies and water. Services are also traded:
tourism, banking, consulting and transportation

Q: 3

Monetary policy consists of the decisions made by a government concerning the money supply and
interest rates. In the United States, the Federal Reserve (the Fed) determines and implements
monetary policy..

Money Supply and Banking

Banks make most of their profits from lending, so they want to make as many loans as possible.
However, in order to provide depositors with confidence that their money will be available for
withdrawals, the Fed requires a bank to set aside a certain percent of each deposit as a reserve that
cannot be lent out. For example, if a bank is required to keep 10% of its deposits as reserves, it will
have to keep $1,000,0000 in reserves if it holds $10,000,000 in deposits. It can lend out the other
Every time a bank loans out money, it's actually increasing the money supply. Imagine that you
deposit $20,000 into a bank account, and the bank has a 10% reserve requirement. The next day,
the bank loans out $18,000 to a business for a capital asset purchase. By loaning the money, the
bank has effectively increased the money supply from $20,000 to $38,000. How? You still have
$20,000 in the bank, but only on paper. However, you can draw on that $20,000 pretty much
anytime you want, and it will be available because people don't need or use money at the same
time. Thus, there are sufficient reserves to handle the normal volume of withdrawals. But we mustn't
forget about our borrower - he has just been given $18,000 to spend on new equipment. That
$18,000 will be given to a manufacturer who will deposit it in a bank. The bank, in turn, will set aside
its reserve requirement and lend out the rest - thereby growing the money supply even more.