4.1 Globalisation

Question 1

what is globalisation?

Answer 1

the growing integration of the worlds economies. meaning some firms expect to sell products anywhere in the world

Question 2

issues with globalisation

Answer 2

• countries have limits on immigrants entering a country
• tariffs: a tax on imports to make them more expensive
• quotas: a physical limit on the quantity of imports allowed into a country

Question 3

how would a reduction in international trade barriers contribute to globalisation?

Answer 3

trading would increase as countries have less restrictions on trading, also increasing globalisation

Question 4

how does political change contribute to globalisation?

Answer 4

political changes can either increase/reduce globalisation. for example, Brexit has lead to the UK no longer being a part of the EU trade bloc

Question 5

how does the reduce in cost of transport contributed to globalisation?

Answer 5

the cost of flying has decreased, meaning people are encouraged to fly/ transport goods more, increasing globalisation.

Question 6

what is containerisation?

Answer 6

containers that are easily transported through ships and

Question 7

how does containerisation impact globalisation?

Answer 7

it makes transporting goods easier, which is good because that then decreases the cost of transport, encouraging globalisation

Question 8

how does easier communication impact globalisation?

Answer 8

through the use of better technology, it has made it easier for people to live abroad and do all of their work online.

Question 9

how does the increased significance of transnational companies impact globalisation?

Answer 9

many companies have developed importance overseas, which increases the number of global investment. for example, CocaCola is sold around the world

Question 10

increased investment flows and its impact on globalisation

Answer 10

FDI occurs when a company makes an investment to a foreign country, for example, Battersea Power Station. it impacts globalisation as it involves the investment of foreign countries, increasing that countries GDP per capita

Question 11

how does migration impact globalisation?

Answer 11

migration is the movement of people who aim to set up permanent/temporary residence in a new location. it is good for globalisation as the person migrating will get a job and increase employment within that country, and they would send money to their home country, which increases their families’ disposable income, allowing them to spend money on luxuries

Question 12

growth of the global labour force and its impact on globalisation

Answer 12

growth of the labour force fills skill gaps like doctors would travel to do their work in other countries. higher labour force also reduces the cost of production and speeds it up

Question 13

how does structural change impact globalisation?

Answer 13

structural change is the development of industries like IT/education, it helps improve the standards of living. also the change of infrastructure (trainlines, roads and electricity etc)

Question 14

what is protectionism?

Answer 14

when a government feel the need to protect their domestic producers from overseas competition

Question 15

why do they protect jobs?

Answer 15

domestic industries need protection from desirable jobs overseas as unemployment is undesirable

Question 16

why do they protect infant industries?

Answer 16

infant industries are new industries
they need to be protection until they can grow and become established

Question 17

why do they need to prevent dumping?

Answer 17

the government may use trade barriers if it feels that an overseas business is dumping goods

Question 18

what is dumping?

Answer 18

where an overseas firm sells large quantities of a product below cost in the domestic market

Question 19

how would they raise revenue through protectionism?

Answer 19

a government can raise their tariffs on imports

Question 20

how can a country prevent entry of undesirable/harmful goods?

Answer 20

a government can protect what comes into the country, for example, Australia have have very tight restrictions on what is allowed into the country

Question 21

improve the balance of payments:

Answer 21

a country might need trade barriers as it has a very large balance of payments deficit. to reduce this deficit, the government might try to reduce imports and increase exports at the same time to reduce the deficit