Economics 4.1.3 Flashcards
“What is globalisation?”
“Globalisation is the economic integration of different countries through increasing freedoms in the cross-border movement of people, goods/services, technology & finance.”
“What are the impacts of globalisation on nations
“This integration of global economies has impacted national cultures, spread ideas, speeded up industrialisation in developing nations & led to de-industrialisation in developed nations.”
“How long has globalisation been increasing?”
“Globalisation has been increasing for thousands of years - it is not a new phenomenon.”
“What improvements have accelerated globalisation in the past 50 years?”
“Improvements in technology & the speed of global connections have exponentially increased the level of interdependence between nations in the past 50 years.”
“How do consumers recognize global brands?”
“Consumers now source products globally, recognizing global brands wherever they travel.”
“What are the four main characteristics of globalisation?”
“The four main characteristics of globalisation are increasing foreign ownership of companies, increasing movement of labour & technology across borders, free trade in goods/services, and easy flows of capital (finance) across borders.”
“What was the value of global trade in 2000?”
“In 2000, the value of global trade was approximately $6.45 trillion.”
“What was the value of global trade in 2020?”
“By 2020, this figure was at $19 trillion.”
“What are two significant factors contributing to globalisation?”
improvements in containerised shipping & the innovation in communication technology.”
“What are the factors contributing to globalisation in the last 50 years?”
“Factors contributing to globalisation in the last 50 years include economies of scale generated by containerisation in the shipping industry, improved ability for firms to connect and promote themselves internationally, effectiveness of the WTO, growth of transnational corporations, and the end of the Cold War.”
“What effect has containerisation had on globalisation?”
“Containerisation has generated economies of scale in the shipping industry.”
“How has communication technology affected international business?”
“Improvements in communication technology have made it easier for firms to connect and promote themselves internationally.”
“What role does the WTO play in globalisation?”
“The WTO has increased effectiveness in negotiating trade agreements and helping countries open up to free trade, thus increasing international specialisation & trade volume.”
“What has been the impact of transnational corporations on globalisation?”
“The rapid growth in the number & influence of transnational corporations has accelerated globalisation.”
“What impact did the end of the Cold War have on global labour supply?”
“The end of the Cold War opened up former communist countries, enlarging the global supply of labour, with over 800,000 people migrating from East Germany to West Germany between 1990 and 1991.”
