4.1 globalisationn Flashcards
1
Q
trade opportunities for international business:
A
- increased FDI
- opportunity for exporting to developing countries
- better infrastructure, developing countries becoming more production locations
2
Q
indicators of growth:
A
- real GDP
- GDP per capita
- comparing currencies
3
Q
measures of health:
A
- life expectancy
- infant mortality
- access to clean water
- doctors per 100,000
4
Q
HDI measures:
A
- life expectancy
- mean years of schooling
GNI per capita
5
Q
what is foreign direct investment?
is it risky?
A
- involves direct investment into a country
- more risk than exporting/importing, allows a firm to access comparative/competitive advantage
6
Q
reasons for FDI:
A
- investment in expanding industry and fast growing, profitable business
- access to infrastructure
- access to local knowledge/skills
- access to foreign brands
- access to local resources
7
Q
what is globalisation?
A
- the increasing integration and cooperation between countries and the growth of international trade
8
Q
key factors of globalisation:
A
- multicultural society
- flow of capital between countries
- economic inter-dependency between countries
- goods and services traded throughout the world
- interchange of technology
9
Q
what is protectionism?
A
- involves protecting domestic business and home industries against foreign competition and limiting the number of imports on the country
10
Q
benefits of free trade:
A
- provides growth opportunities
- allows businesses to access components, raw materials and finished goods far cheaper
11
Q
what are examples of protectionism in practice?
A
- tariffs
- subsidies
- quotas
- technical barriers
12
Q
what are tariffs?
A
- tax on imports that increase the price of imported goods
13
Q
what are subsidies?
A
- government grants given to support exporting business to they can lower their prices to compete internationally
14
Q
what is a quota?
A
- physical limits set on the number of units that can be imported into a country
15
Q
what is a technical barrier?
A
- e.g. rules and regulations governing the standard of products entering the country
