4.1.3 Causes of Increased Globalisation

Question 1

define trade liberalisation

Answer 1

the removal or reduction of barriers to trade between different countries.

Question 2

benefits of trade liberalisation

Answer 2

• Any raw materials that firms import will be cheaper - lower firms costs making the business more competitive
• Export of goods becomes easier and cheaper
• More markets for firms to expand into
• Cheaper products for consumers
• Increased competition means firms will sell products as cheap as possible in an attempt to be main market leader

Question 3

weakness of trade liberalisation

Answer 3

• Domestic business may be forced out and lead to unemployment
• Leads to removal of national culture

Question 4

Political changes

Answer 4

trade restrictions may have been put in place by government however if the part changes and a new one is elected who supports trade liberalisation then trade restrictions will be removed

Question 5

Economic development leads to structural changes

Answer 5

the structure of a country’s economies can be through the different industries
services

Question 6

what are the 4 types of industries

Answer 6

Primary industries - obtaining raw materials such as agriculture or mining

Secondary industries - manufacturer good with raw materials

Tertiary industries - industries which are services

Quaternary industries - industries which are knowledge based such as scientific research

Question 7

what happens as a contry develops

Answer 7

As a country develops, its reliance on primary and secondary industries falls and tertiary and quaternary industries grow creating more demand for goods and services