Business 4.1 global economies

Question 1

Globalisation def

Answer 1

Businesses operating in lots of countries across the world and have international influence

Question 2

GDP

Answer 2

Total market value of goods and services produced within a nation of a period of time

Question 3

Drawbacks of GDP

Answer 3

• Total GDP may be higher in one country than another due to more people in that country.
  -Dosen’t show distribution of wealth, levels of disposable income, or costs of living

Question 4

Other indicators of economic growth

Answer 4

-Literacy rate
-Health
-HDI-measures how ‘developed ‘ a country is based on life expectancy, number of years schooling and average income

Question 5

What is trade liberalisation?

Answer 5

Reduction and removal of trade barriers e.g tariffs

Question 6

Adv and trade liberalisation?

Answer 6

-decreases price of imported raw materials
-exporting easier and cheaper
-more competition between firms means lower prices

Question 7

Dis adv of trade liberalisation?

Answer 7

-Increased number of imports will mean domestic business may suffer
-some believe trade lib is leading to removal of national cultures

Question 8

Causes of increased globalisation

Answer 8

• trade lib
  -Political changes
  -Structural changes in economy
  -more people in the world able to work
  -people more likely to migrate
  -more FDI
  -Increase in global companies
  -transport and communication cheaper

Question 9

Tariff def

Answer 9

Tax that has to be paid when certain products are imported into a country

Question 10

Quotas def

Answer 10

Trade restrictions set by the government that put limits on the volume of particular products ina certain time period

Question 11

What can government legislation do to protect domestic businesses?

Answer 11

-trade sanctions
-trade embargoes