CHAPTER 9 - Globalisation

Question 1

1. CONCEPT OF GLOBALISATION

Answer 1

• goods and services are traded freely across international borders

Question 2

2. CONCEPT OF GLOBALISATION

Answer 2

• people are free to live and work in any country they choose

Question 3

3. CONCEPT OF GLOBALISATION

Answer 3

• there is a high level of interdependence between nations

Question 4

4. CONCEPT OF GLOBALISATION

Answer 4

• capital can flow freely between different countries

Question 5

5. CONCEPT OF GLOBALISATION

Answer 5

• there is a free exchange of technology and intellectual property across borders

Question 6

REASONS FOR GLOBALISATION

Answer 6

• developments in technology
• international transport
• there has been a huge amount of deregulation
• an increase in tourism
• many firms want to sell abroad

Question 7

GOVERNMENT AND GLOBALISATION

Answer 7

• countries cannot trade if the government keeps international borders closed
• international trade will be very limited if government put up trade barriers

Question 8

OPPORTUNITIES OF GLOBALISATION FOR BUSINESSES

Answer 8

• access to larger markets
• lower costs
• access to labour
• reduced taxation

Question 9

THREATS OF GLOBALISATION TO BUSINESSES

Answer 9

• competition
• international takeovers
• increased risk of external shocks