4.1.3 Flashcards
Definition of Trade Liberalisation
The removal or barriers to trade between countries
2 Benefits of Trade Liberalisation
-Increase market size
-Reduce costs through cheaper raw materials
2 Drawbacks of Trade Liberalisation
-Infant industries may not be able to compete
-Dumping
8 Reasons for increased Globalisation
-Political Change
-Reduced Transport/Comms cost
-Increased importance of global firms
-Increased investment flows
-Migration
-Growth of labour force
-Trade Liberalisation
-Structural Change
What is Political Change
Changes in government which influences countries attitude to trade
What is Reduced Transport/Comms Cost
Economies of scale has reduced businesses costs
Tech advancements make it easier to connect
What is Importance of Global Firms
-Operating globally increases pressure for countries to engage in free trade
What is Increased Investment Flows
FDI allows businesses to establish themselves in countries where they may face trade barriers
What is Migration
The movement of people from one location to another as better transportation and deregulation allows flexibility
What is Growth of Labour Force
Global labour force has grown significantly leading to more income to be spent and more entrepreneurs
What is Structural Change
When a industry or market changes what sector of the industry they operate in
