4.1.1 Globalisation

Question 1

What are the characteristics of globalisation?

Answer 1

• increase in international trade
• transnational brands
• global supply chains
• labour migration

Question 2

What are key factors driving globalisation?

Answer 2

• containerisation
• technological advancements
• different tax systems
• trade deals
• improvements in infrastructure

Question 3

What is containerisation?

Answer 3

• allowed goods to be shipped cheaper
• this could benefit EOS
• could cause prices to fall

Question 4

Benefits of globalisation

Answer 4

• economies of scale: has encouraged to reap benefits from division of labour
• more costs- reducing innovation: more comp = reduced monopoly = incentive
• freer movement of labour
• current account surplus
• lower consumer prices/better quality

Question 5

Costs of globalisation?

Answer 5

• environmental costs: threats to the global commons including irreversible damage to ecosystems.
• trade imbalances: lead to protectionists tensions, more import tariffs = de-globalisation
• brain drains: more mobile global or workforce means some countries suffer from emigration
• tax avoidance: MNCs can find ways to avoid corporate tax

Question 6

What are MNCs/TNCs?

Answer 6

Multi or trends national companies: are companies that operate in more than one country - eg: head office might be in the USA but manufacturing is in SE Asia

Question 7

What is de-globalisation?

Answer 7

A reversal of the process of globalisation

Question 8

Causes of de-globalisation?

Answer 8

• protectionism: trade barriers may be used to shield domestic industries from competition
• economic shocks: such as recessions/ downturns
• changing trade agreements
• health crisis: pandemic, trade, and supply chains

Question 9

What are global value chains?

Answer 9

Refers to the inter-connectedness network of activists involved in the production and delivery of goods/services that are performed by multiple firms operating in different countries

Question 10

Benefits of globalisation on developed countries

Answer 10

• increased access of foreign markets
• attraction of foreign investment
• improved productivity and innovation

Question 11

Costs of globalisation on developed countries?

Answer 11

• job displacement/ structural unemployment
• rise in income inequality
• environmental damage

Question 12

Benefits of globalisations on developing countries

Answer 12

Increased access to global markets
Increase in FDI
Increased access to knowledge and tech

Question 13

Costs of globalisation on developing countries?

Answer 13

Economics dependence such as primary product dependency
Exploitation of labour and issues with emigration
Environmental degradation