4.1 International Economics

Question 1

Globalisation

Answer 1

The ability to produce any good or service anywhere in the world, using raw materials, components, capital and technology from anywhere, sell the resulting output anywhere and place the profits anywhere.

Question 2

5 Characteristics of globalisation

Answer 2

Increase in trade as a proportion of GDP (until recently)

Increased movements of financial capital and people between countries

Increased international specialisation and division of labour

Growing importance of global or transnational companies

Increase in foreign direct investment