4.1.3- Factors contributing to increased Globalisation

Question 1

Drivers for international business

Answer 1

a firm can expand revenue by selling existing products to new markets abroad, at no extra costs

Question 2

Trade Liberalisation

Answer 2

the process by which international trade is made easier through a relaxation of the rules which govern it

Question 3

Tariff

Answer 3

an import tax placed on items the government deems harmful/dangerous

embargo- total ban
quotas- fixed minimum quantities of imports

Question 4

Consequences of trade liberalisation

Answer 4

• makes markets more competitive
• creates more opportunities for business
• consumers benefit from lower prices and broaden range of quality goods available
• companies benefit as liberalised trade diversifies risk

Question 5

World Trade Organisation

Answer 5

• encourages reduction of trade barriers
• exists to reduce barriers to trade and ensure that countries adhere to previous discussed agreements
• employes a system of trade rules and by providing a forum for the negotiation of trade disputes

Question 6

Political Change

Answer 6

politics now happens on a global scale with meetings between heads of state of different countries, in comparison to back in the day when individual governments wanted to protect the interests of their country