2.2 The Global Economy Unit 35 - 39 Flashcards
1
Q
- What is globalization?
A
it is the growing interconnection of the world’s economies.
2
Q
- What is interdependence?
A
- where the actions of one country or large firm will have a direct effect on others.
3
Q
- What are the 5 features of globalization?
A
- goods and services are traded freely across international borders.
- free to live and work in any country they choose.
- high level of interdependence between nations.
- capital can flow between different countries.
- the free exchange of technology and intellectual property.
4
Q
- What are the four reasons for globalization?
A
- fewer tariffs and quotas
- reduced cost of transport
- reduced cost of communication
- increased significance of multinationals
5
Q
- What is a saturated market?
A
market in which there is more of a product for sale than people want to buy.
6
Q
- Who are the 6 things affected by globalisation?
A
- individual countries
- governments
- producers
- consumers
- workers
- the environment
7
Q
- What are the 6 advantages to individual countries of globalization?
A
- high GDP
- growth
- contribute and increase wealth in the country
- more output
- high employment
8
Q
- What is the disadvantages to an individual country of globalization?
A
- due to interdependence economy can be affected badly.
9
Q
- What are the 4 advantages to a producer of globalization?
A
- access to huge markets.
- lower costs.
- access to labor.
- reduced taxation.
10
Q
- What are the 5 advantages of consumers of globalization?
A
- cheaper goods
- wider choice
- latest technology
- quality of goods
- improved living standards.
11
Q
- What are the 3 advantages to workers of globalization?
1 disadvantage to workers?
A
Ad:- more job opportunities
- learn new skills
- can get paid more
Dis: offshoring:- practice of getting work done in another country in order to save money.
12
Q
- What is a disadvantage of globalization to the environment?
A
unsustainable economic growth:- economic that is not possible to sustain without causing environmental problems.
13
Q
- What is the 2 advantage of globalization to the government?
A
- increase in tax revenue
- encouragement of starting up new business.
14
Q
- What are multinational corporations?
A
- companies that operate in many different countries.
15
Q
- What are the 6 features of MNCs?
A
- Huge assets
- highly qualified and experienced professional executives and managers.
- powerful advertising and marketing capability.
- highly advanced and up-to-date technology.
- highly influential both economically and politically.
- very efficient since they can exploit huge economies of scale.
16
Q
- What is Foreign Direct Investment? (FDI)
A
FDI, or inward investment, occurs when a company makes an investment in a foreign country.
17
Q
- What are the 4 reasons for the emergence of MNCs/ FDI?
A
- economies of scale
- access to natural resources/ cheap materials.
- Lower transport and communication costs.
- Access to customers in different regions.
18
Q
- What are the four ways governments actively seek FDI?
A
- offering tax breaks, subsidies, grants, and low-interest loans
- lifting restrictions and relaxing regulations to make investing easier for foreign firms
- investing in their own infrastructure.
- investing in education so that people can get jobs in foreign countries.