Edexcel- Factors contributing to increased globalisation 4.1

Question 1

Globalisation

Answer 1

Economic integration of different countries through increasing freedoms in cross border movement of people, goods, services, technology and finance.

Question 2

Trade liberalisation

Answer 2

Removal or reduction of barriers to trade between different countries.

Question 3

Benefits of trade liberalisation

Answer 3

Increase businesses market share.
Imported raw materials and components sourced cheaply.

Question 4

Disadvantages of trade liberalisation

Answer 4

Domestic firms unable to compete against international firms.
Businesses abroad may sell items at unfairly low prices.

Question 5

Political change

Answer 5

changes in the government of a country can influence change.

Question 6

Reduced cost of transportation and communication

Answer 6

Economies of scale due to innovation on ships reduced costs.
Technological advancements make it easy for buyers and sellers to connect.

Question 7

Transnational companies

Answer 7

Businesses which operate in more than one country.

Question 8

What has occurred from an increased significance of transnational companies?

Answer 8

More pressure on countries for free trade.

Question 9

Free trade

Answer 9

Does not restrict exports or imports

Question 10

Increased investment flows

Answer 10

FDI is important for job and wealth creation.
Businesses can establish themselves in countries they may face trade barriers in.

Question 11

Migration with and within economies

Answer 11

Increased globalisation as better transport and deregulation has allowed workers more flexibility with work.

Question 12

Migration

Answer 12

Movement of people from one country to another.

Question 13

Growth of global labour force why

Answer 13

Growth of emerging economies

Question 14

Growth of global labour force

Answer 14

More people in work means more income to spend on goods and services.
Increased supply of labour leads to falling wages which reduces costs.

Question 15

Structural change

Answer 15

Occurs when a country, industry or market changes the industry or sector they work in.

Question 16

Offshoring

Answer 16

Relocation to lower cost country

Question 17

What does offshoring do?

Answer 17

Speed up globalisation

Question 18

Example of political change

Answer 18

china’s increase in imports since joining world trade.

Question 19

Example of structural change

Answer 19

Uk shifting from manufacturing to teritary.