4.1.3- factors contributing to increased globalisation

Question 1

What does globalisation mean?

Answer 1

The process by which the world is becoming increasingly interconnected

Question 2

What 8 factors contribute to globalisation?

Answer 2

-trade liberalisation
-political change
-reduce costs of transport and communication
-increased significant of TNC
-increased investment flows
-migration
-growth of labour force
-structural change

Question 3

What is trade liberalisation?

Answer 3

The process by which international trade is made easier through the relaxation of tariff and barriers

Question 4

How has political change increased globalisation?

Answer 4

less protectionists policies like traffis and quotas. There has also been an increase in open trade between nations

Question 5

Why has globalisation happened because of reduce costs of transport and communication?

Answer 5

Cost has decreased due to cargo containers. Businesses can gain EOS due to ships transporting big quantities. Internet has also caused globalisation to increase.

Question 6

What are pros to globalisation?

Answer 6

-easier to sell products abroad=increase sales and rev
-access to cheaper raw materials=lower prices, lower production costs
-access to cheaper labour

Question 7

What are the cons to globalisation?

Answer 7

-UK business increase competition
-exchange rates will impact sales
-risk of being unethical
-UK labour costs higher