Attitudes of National Governments to globalisation

Question 1

Free market liberalisation

Answer 1

Thatcher UK
Belief that government intervention hinders economic growth in the long term
Banking and finance deregulated leading to London becoming world financial centre

Question 2

Privatisation

Answer 2

Until 1980s railways and utilities owned by gov
Thatcher privatised- private companies bought and run

May compromise quality of services eg strikes in northern rail

Question 3

Encouraging business start ups

Answer 3

Gov incentives eg construction, grants, tax breaks
Provided by governments to attract businesses eg Disney

Question 4

FDI

Answer 4

TNCs increase economic and industrial activity within a country via offshoring, foreign mergers+acquisitions, transfer pricing

Question 5

Censorship

Answer 5

restrict flow of info and knowledge eg internet restrictions
To limit knowledge of foreign culture

Question 6

Limiting migration

Answer 6

border control due to increase of right-wing extremist views

Question 7

Trade protectionism

Answer 7

subsidies, tariffs, quotas protect domestic industries
In 2016, Chinese steel flooded global market at low prices due to gov subsidies
Led to UK Data Steel Works closing due to loss of 1m per day

Question 8

Free trade blocs with evaluation (3+ 4-)

Answer 8

agreements to reduce restrictions on flow of capital and goods
+ larger market so increased revenue
increased demand so other benefit from outsourcing
increased reliability eg better pathways

-internet focussed on themselves so outsiders excluded
foreign industries damaged due to competition
not guaranteed fair treatment eg NAFTA not strengthened US, Canada and Mexico