chapter 15

Question 1

Globalisation definition

Answer 1

the interconnectedness between different countries

Question 2

Factors of Globalisation

Answer 2

• exploiting of lower taxes
• freer flow of capital
• economies of scale
• abolishment of trade barriers
• techological change
• containerism

Question 3

Benefits of Globalisation

Answer 3

freer flow of :
1. goods & services
2. labour
3. capital

Question 4

Costs of Globalisation

Answer 4

freer flow of :
1. goods & services
2. labour
3. capital

Question 5

Absolute vs Comparative Advantage

Answer 5

absolute advantage
a country being able to produce a g&s at lower cost then another country

comparative advantage
a country being able to produce a g&s at lower opportunity cost then another country

Question 6

Types of Comparative Advantage

Answer 6

• dynamic
• static

Question 7

Patterns of Trade (SG)

Answer 7

key export partners
china, hk, malaysia, europian union, indonesia

key exports
machinery & equipment, electronics, telecommunication, pharmeceuticals & chemicals, refined petroleum products

key import partners
china, european union, malaysia, us, japan

key imports
machinery & equipment, mineral fuels, chemicals, food, consumer goods

Question 8

Protectionism definition

Answer 8

restrictions imposed on trade in g&s between countries by the government

Question 9

Protectionist Measures

Answer 9

• tariffs
• quotas
• administrative barriers
• export subsidies
• preferential government procurement policies

Question 10

Arguments for Protectionism

Answer 10

• infant industries
• protecting domestic employment
• preventing dumping

Question 11

Arguments against protectionism

Answer 11

• lower global output & consumption
• higher prices
• welfare loss
• greater inefficiency
• reduced consumer choice