4.1- international economics

Question 1

gloablisation characteristics

Answer 1

-Globalisation is the ever increasing integration of the world’s local, regional and
national economies into a single, international market.
-involves free trade and free movement of technology

Question 2

global interdependence

Answer 2

-countries have become more interdependent due to globalisation
-performance of their own country depends on performance of others
-e.g. global effects of credit crunch 2009

Question 3

factors contributing to globalisation in last 50 years

Answer 3

-trade in goods
-trade in services
-trade liberalisation
-multinational corporations
-international financial flow
-communications and IT
-containerisation

Question 4

How does trade in goods lead to globalisation?

Answer 4

-developing countries have developed capital and knowledge to manufacture goods
-efficient transport over boarders
-MNCs move production abroad due to cheap labour
-developed trades with developing

Question 5

how does trade in services lead to globalisation?

Answer 5

-e.g. trade of tourism and software production increased from developing countries to developed

Question 6

trade liberalisation

Answer 6

-The growing strength and influence of organisations such as the World Trade
Organisation (WTO), which advocates free trade, has contributed to the
decline in trade barriers.