factors contributing to increased globalisation

Question 1

trade liberalisation is

Answer 1

removing or reducing of tariff obstacles
reduces international trade barriers
free exchange of goods between nations

Question 2

positive of trade liberalisation

Answer 2

increased economies of scale

greater competition that drives down costs

Question 3

negatives of trade liberalisation

Answer 3

loss of local business due to competion

dumping by overseas rivals

Question 4

dumping is

Answer 4

excess stock is sold below costs of global markets causing other products to become unprofitable

Question 5

7 factors contributing to increased globalisation

Answer 5

• trade liberalisation
• reduced cost of transport and communication
• increased significance of transnational corporations
• increased investment flows
• migration within and between economies
• growth of the global labour force
• structural change

Question 6

4 ways transport and communication costs have reduced

Answer 6

• larger cargo ships means decreased cost of transporting goods
• oil is cheaper
• economies of scale
• internet and mobile technology has improved communication

Question 7

a transnational company is

Answer 7

a registered business that operates in more than one country but sells the same products

Question 8

how has increased investment flow contributed to globalisation

Answer 8

investments can be made through the stock market

can more easily access funds

Question 9

2 ways migration has contributed to globalisation

Answer 9

cheap and quick transport

workers move around

Question 10

3 ways the growth of global labour forces has increased globalisation

Answer 10

• some countries have low Labour costs and high skill levels
• offshoring
• take advantage of labour intensive industries