6.2 globalisation

Question 1

Globalization

Answer 1

The integration of markets in the global economy with fewer
trade barriers.

Question 2

Causes of globalization

Answer 2

Transportation and the use of massive cargo ships

International cooperation and free trade agreements

Technology and the Digital Revolution

Communication and the speed and cost of transmitting information

Question 3

Advantages of multinational companies

Answer 3

foreign investment, lower product prices, higher profits, greater consumer choice, technology transfer, competition

Question 4

Disadvantages of multinational
corporations

Answer 4

loss of investments, environmental standards, the exploitation of resources, dislocation of labor resources in the home country

Question 5

benefits of free trade for producers

Answer 5

-economies of scale
-specialization
-increased competition

Question 6

Benefits of free trade for consumers

Answer 6

-lower prices
-greater choice

Question 7

benefits for countries of foreign trade

Answer 7

-higher GDP, foreign exchange, higher tax revenue

Question 8

methods of protection

Answer 8

quota, tarrifs,exchange rates,emabrgo,

Question 9

reasons for protection

Answer 9

protect national industries, increase living standards, protect infant industries, avoid dumping,protect strategic industries