4.1.1 - Globalisation

Question 1

What Is Globalisation?

Answer 1

Is the economic integration of different countries through increasing freedoms in the cross-border movement of people, goods, service, technology and finance.

Question 2

What Has The Integration Of Global Economies Impacted, Spread, Sped Up & Led To In Developing Countries?
(4 Points)

Answer 2

~ Impacted national cultures.

~ Spread ideas.

~ Sped up industrialisation.

~ Led to de-industrialisation.

Question 3

What Is Industrialisation?
(2 Points)

Answer 3

~ Process by which an economy transforms from primarily agricultural to one based on the manufacturing of goods.

~ This shift typically involves an increase in the production and export of manufactured goods, the development of industrial infrastructure, and a movement of labour from rural to urban areas.

Question 4

What Is De-Industrialisation?
(2 Points)

Answer 4

~ Process in which the industrial sector, particularly manufacturing, declines in terms of its contribution to a country’s economy.

~ This process is characterised by a reduction in industrial activity, often accompanied by a corresponding increase in the service sector.

Question 5

What Has Increased The Level of Interdependence Between Nations In The Past 50 Years?
(2 Points)

Answer 5

~ Improvements in technology.

~ Speed of global connections.

Question 6

What Are The Causes (Factors) Of Globalisation?
(7 Points)

Answer 6

~ Trade liberalisation.

~ Trading blocs.

~ Growth of MNCs And TNCs.

~ Technological advancements.

~ Mobility of labour and capital.

~ Improvements in transport infrastructure.

~ International financial markets.

Question 7

Trade Liberalisation Is A Cause Of Globalisation, Explain How?
(2 Points)

Answer 7

~ It has lead to more free trade between nations.

~ Caused trade barriers to decrease.

Question 8

What Is Trade Liberalisation?

Answer 8

Process of reducing or eliminating trade barriers to promote a freer and more open international trade.

Question 9

Trading Blocs Is A Cause Of Globalisation, Explain How?

Answer 9

Growth of trading blocs has brought nations together.

Question 10

Growth Of MNCs & TNCs Is A Cause Of Globalisation, Explain How?
(2 Points)

Answer 10

~ Bigger MNCs have dispersed more around the world, leading to greater integration.

~ Acting to increase their own profits as they want to take advantage of low labour costs.

Question 11

Technological Advancements Is A Cause Of Globalisation, Explain How?
(2 Points)

Answer 11

~ It’s easier to transport goods and services around the world.

~ It’s easier for businesses to set up in foreign countries without major issues

~ Software development and growth of the internet.

Question 12

Mobility Of Labour & Capital Is A Cause Of Globalisation, Explain How?

Answer 12

Government policies have encourage greater migration and spread of capital around the world.

Question 13

Improvements In Transport Infrastructure Is A Cause Of Globalisation, Explain How?

Answer 13

Quick, reliable and cheap methods to allow production to be separated around the world.

Question 14

International Financial Markets Is A Cause Of Globalisation, Explain How?

Answer 14

Have provided the ability to raise money and move money around the world.

Question 15

What Are The 4 Main Characteristics Of Globalisation?

Answer 15

~ Increasing foreign ownership of companies.

~ Increasing movement of labour and technology across borders.

~ Free trade in goods and services.

~ Easy flows of capital (finance) across borders.

Question 16

What Are The Positive Impacts Of Globalisation On Consumers?
(3 Points)

Answer 16

~ More choice of goods from different countries.

~ Lower prices as MNCs benefit from EOS and produce in countries with lower costs and the entry into foreign competition.

~ Improved quality and innovation due to exposure to global markets.

Question 17

What Are The Negative Impacts Of Globalisation On Consumers?
(3 Points)

Answer 17

~ Rise in prices, due to a rise in incomes leading to higher demand for products.

~ Job insecurity, as there is increased competition.

~ Many consumers worry about the loss of culture.

Question 18

What Are The Positive Impacts Of Globalisation On Workers?
(3 Points)

Answer 18

~ Job creation, due to the growth of MNCs and training schemes.

~ Wage growth, due to better wages offered by MNCs in developing countries than by local firms.

~ Innovation, due to access to advanced technology.

Question 19

What Are The Negative Impacts Of Globalisation On Workers?
(3 Points)

Answer 19

~ Wage inequality, due to high skilled workers wages increase and low skilled workers wage decrease.

~ Poor working conditions, due to lower costs of production.

~ Worker exploitation, due to the absence of strong labour laws in less developing countries.

Question 20

What Are The Positive Impacts Of Globalisation On Producers?
(3 Points)

Answer 20

~ Access to larger international markets, allowing them to sell goods and services beyond their domestic markets and enhancing competition.

~ EOS, due to an increase in production scale.

~ Access to cheaper materials and labour, reducing costs.

Question 21

What Are The Negative Impacts Of Globalisation On Producers?
(3 Points)

Answer 21

~ Increased competition, can lead to a decrease in market share and price wars.

~ Unemployment increases, due to downsizing to streamline operations to remain competitive.

~ Exchange rate volatility, globalisation exposes producers to this impacting costs of imports and competitiveness of exports.

Question 22

What Are The Positive Impacts Of Globalisation On The Government?
(3 Points)

Answer 22

~ Increased FDI as globalisation attracts this, stimulating economic growth.

~ Increased tax revenue, due to economic growth improving social services and infrastructure.

~ Benefits from innovation on economic growth.

Question 23

What Are The Negative Impacts Of Globalisation On The Government?
(3 Points)

Answer 23

~ TNCs bride and lobby government, leading to corruption.

~ Lose out from tax avoidance from MNCs and TNCs.

~ Loss of government control due to a loss of independent decisions.

Question 24

What Are The Positive Impacts Of Globalisation On The Environment?
(3 Points)

Answer 24

~ More global awareness for the environment.

~ Investment in environment protection from economic growth.

~ Improvement in resource efficiency.

Question 25

What Are The Negative Impacts Of Globalisation On The Environment?
(3 Points)

Answer 25

~ Increased pollution (Air, water, soil and noise) from transporting materials.

~ Deforestation and habitat loss.

~ Overconsumption of resources in resource extraction.