4.1.3. Factors Contributing To Increased Globalisation

Question 1

Factors

Answer 1

-Reduction of international trade barriers/ liberalisation
-Political change
-Reduces cost of transport and communication
-Increased significance of global transnational companies
-Increased investment flows (FDI)
-Migration with and between economies
-Growth of global labour force
-Structural change

Question 2

Reduction of international trade barriers/trade liberalisation

Answer 2

Removal of trade barriers of
-Quotas: physical limits on quantity of a type of good that cat can be imported in a year
-Tariffs: taxes imposed on imports that raise price of imported products
-Regulations: put in place to b no ale it harder for imports to enter a county

-Increases competition as those will lose that protection from barriers

Question 3

Political change

Answer 3

-helps business to identify as giving rise to opportunities or threats

Question 4

Reduced costs of transport and communication

Answer 4

Extra costs can prevent trade by lowering profit margins but significant reductions in costs due to:
-Oil prices remained stable due to fears that supply may run low, driving costs up
-Tech developments led to development of more efficient engines reducing fuel consumption
-Tech enables building of bigger transfers allowing container econ of scaje

Question 5

Increased significance of transnational corporations

Answer 5

When they enter new markets, local businesses face powerful new competition that will benefit from econ of scale

Question 6

Increased investment

Answer 6

Comm. and trade liberalisation have increased trans boarder capital flows.
Interconnections have grown
Banks investing elsewhere in the world can lead to financial crisis like 2008

Question 7

Migration

Answer 7

Most tend to migrate as they are
-Proactive and determined to work and live in new country
-Tend to be well educated

Can help stimulate economic growth