4.1.3 Factors contributing to increased globalisation Flashcards
What is globalisation?
1
- The trend towards closer ties between economies and businesses
What is isolationism?
1
- Nation who’s trade policies put interests of dom firms first, trade barriers
What is trade liberalisation?
1
- Involves removing trade barriers between 2 countries
What are tariffs?
1
- Tax on imports, ^sales of domestic rivals
What are quotas?
2
- Physical limits on goods imported in a year
- Once reached consumers must buy from domestic producers
What is an example of political change that increased globalisation?
1
- China joined WTO, access to rich western markets, export-led boom
What reasons are there for reductions in cost of transport and communication?
4
- Oil price = stable/fallen
- Tech dev = ^efficient engines, >fuel consumption
- Tech = bigger transport, container EOS
- ^comm = internet
How does increased significance of transnational corporations contribute to increased globalisation?
1
- Consumer choice from nation-nation decline as global selling
How does increased investment contribute to increasing globalisation?
1
- Financial markets ^willing to invest capital in business elsewhere in world
How can migration increase globalisation?
2
- They’re determined, willing to move to entirely new country to work/live
- Relatively well educated
How can growth of global labour force increase globalisation?
2
- Realise >labour costs by offshoring production
- UK business short of skilled staff recruit from abroad
How does structural change sustain rise of globalisation?
2
- Shift to manufac then services, eco dev
- Keen to find export markets that accelerate dev
What are regulations?
1
- Rules, paperwork, harder for imports to enter country
