4.1.2 Factors Contributing to Increased Globalisation

Question 1

Factors Contributing to Increased Globalisation

Answer 1

a) Trade liberalisation
b) Political change
c) Reduced cost of transport and communication
d) Increased significance of global (transnational)
companies
e) Increased investment flows (FDI)
f) Migration of workers
g) Growth of the global labour force
h) Structural change

Question 2

Increased significance of global companies

Answer 2

Larger MNC’s have greater ability to invest in other economies.

Question 3

Political Change

Answer 3

Amount of political cooperation that exists between countries.
Politics now occur on a global scale.

Question 4

Increased investment flows

Answer 4

+ Job and wealth creation
+ Connects economies
+ Boosts trade
+ Share technology/ideas

Question 5

Migration of workers

Answer 5

Movement of people from one country to another.
New demand for products in new locations.
Businesses can find it easier to set up operations abroad.

Question 6

Growth of the global labour force

Answer 6

Businesses have freedom to set up business operations wherever.

Question 7

Structural change

Answer 7

When an economy shifts its basic functions of operations.
Countries change their structure to specific goods and specialise in producing these goods.