4.1 Globalisation

Question 1

What is globalisation?

Answer 1

Globalisation is a process of deeper economic integration between countries and regions of the world.

Question 2

What are the characteristics of globalisations?

Answer 2

-Greater trade in goods and services both between nations and within regions.
-An increase in transfer of capital between countries.
-The development of global brands that
serve markets in higher and lower income countries.

Question 2

What are the causes of globalisations?

Answer 2

-The deregulation of markets
-Political changes
-The removal of barriers to trade
-The lowering of transportation costs
-Improved communication systems.

Question 3

What are the advantages of mulitnationals?

Answer 3

-Provide employment and create
better living standards
-Investment leads to
infrastructure development
-Introduce new technology and
working methods
-Increased growth in the UK
economy – many businesses
from supplying multinationals
in their locality

Question 4

What are the disadvantages of multinationals?

Answer 4

-Multinational companies can
cause both small and large
British businesses to go out of
the business, leading to
increased unemployment.
-Multinationals have been
accused of destroying local
culture.
-They may have negative
environmental impacts, such as
pollution, noise, congestion and
destruction of the environment.

Question 5

What is external growth?

Answer 5

Merging with or acquiring a business in another country.

Question 5

What is global branding?

Answer 5

Businesses that have established a strong brand identity in their domestic market may introduce their product or service into other countries.

Question 6

What is economic growth?

Answer 6

Occurs when a country produces more goods and services in one year than it did the year before.

Question 6

How is economic growth measured?

Answer 6

Gross domestic product.

Question 8

What are some positive impacts of economic growth?

Answer 8

-Increased spending byconsumers leading to increased sales for business
-Increased opportunities to
expand
-Increased profits and
investment in business

Question 10

What are some negative impacts of economic growth?

Answer 10

-Increase in imported goods
if industry can not keep up
with demand
-Increase in prices leading to
inflation
-Shortage of labour leading
to increased wages and
costs