3.2b role of national governments in accelerating globalisation

Question 1

what is globalisation

Answer 1

globalisation is a historical process, the result of human innovation and technological progress

Question 2

governments & trade blocs

Answer 2

• they promote the growth of trade blocs such as ASEAN and the EU
  whereby countries can trade with allies without barriers
• this has allowed more goods and services to travel across the world
• The UK only has a population of 65 million but trading in the EU increases the market for firms in the UK to 508 million

Question 3

governments & policies

Answer 3

• policies such as FREE MARKET LIBERALISATION became the official approach to development in the late 1980s to allow capitalism to generate wealth
• privatisation (one of the policies under Margaret Thatcher’s conservative governments) is where industries that had previously been owned by the state are now sold to private companies
• accelerates globalisation as ownership of these assets is often passed abroad
• governments can incentivise starting up businesses using low business rates, extra benefits for business owners, changes in regulations
• allow local and foreign-owned businesses to make more profit and trade more or settle overseas