Globalisation

Question 1

What is globalisation

Answer 1

Globalisation is the process in which national economies have become increasingly integrated and inter-dependent

Question 2

Where do some economist believe globalisation stemmed from

Answer 2

back in the times when the Spanish and Portuguese were occupying most of South America

Question 3

What are the causes of globalisation

Answer 3

Globalisation has been made possible with improvement in information and communication technology and developing transport and other more traditional forms of technology

Question 4

what are examples of globalisation

Answer 4

Service industries in the uk dealing with customers through call centres in India

Question 5

What are the main characteristics of globalisation

Answer 5

-The growth of international trade and reduction of trade barriers

-Greater international mobility of both capital and labour

-Increase in power of international capitalism and multinational corporations or transnational companies

-The deindustrialisation of older industrial regions and countries

-The movement of manufacturing industries to newly industrialising countries

-The movement of internationally mobile services industries such as call centres and accounts offices

A decrease in power in governmental power to influence decisions made by MNCs to shift economics activity between countries.

Question 6

What is the reduction of trade barriers known as and who is it encouraged by

Answer 6

it is known as trade liberalisation and it is encouraged by world trade organisations

Question 7

What does MNCs

Answer 7

Multinational corporations

Question 8

What are the consequences of globalisation for less developed countries

Answer 8

-Low paid workers can be abused such as sweatshops

-Farmers in the less developed countries being forced to grow genetically modified crops

-The privatisation of state - owed industry in order to qualify for IMF and world bank loans.

-The dominance of multinational corporations which leads to a decrease in cultural diversity

Question 9

What is multinational companies

Answer 9

This is a company that has business operations in at least one country other than its home country. By some definitions, it also generates at least 25% of its revenue outside of its home country.

Question 10

What are the pros of globalisation

Answer 10

-Lower prices
-Benefits of trade
-Greater employment
-Benefits from large economy of scale
-Free movement of labour and capital (FDI)
-Technological transfers and innovations

Question 11

what does lower prices entail

Answer 11

increase international competitions
-much bigger market relieves the pressure of prices, increases efficiency and lowers cost
-This increases consumer surplus
-More choice of goods and services
-Greater quality of goods
-More enervative products being made

Question 12

What does benefits of trade entail

Answer 12

-More trade blocs such as the EU or the NAFTA
-The World Trade Organisation (WTO)

Question 13

what does Greater employment entail

Answer 13

-Market size is bigger

-Firms grow in size because there potential for trade increases, therefore more workers will need to be hired in order to supply that output

-can help people grow there wealth there for that’ll improve peoples quality of wealth

-Improves standard of living

-Provides people with a stable form of income

Question 14

what are the benefits from large economy of scale

Answer 14

-Increase output and then lower cost
-leads them to benefit from higher profits
-leading to more stimulation in investment and more innervation in technology down the road

Question 15

What does Free movement of labour and capital (FDI) entail

Answer 15

-Business benefit from the ease of movement
-Investment in technology
-Government policies to encourage more movement of labour and capital

Question 16

What are the ways governments can increase labour market flexibility

Answer 16

-Training for low-skilled workers
-cheaper housing
-child care support
-Encourage immigration
-Legislation to reduce labour market protection
-support zero-hour contracts
-reduce the power of trade unions

Question 17

what are the cons of globalisation

Answer 17

-Growing inequality
-Higher structural unemployment
-Environmental costs
-Trade deficit
-Greater risk of external shocks
-Less cultural diversity

Question 18

What does growing inequalities entail

Answer 18

higher incomes not translating for higher incomes for all

Question 19

What does higher structural unemployment entail

Answer 19

-Countries struggle to compete with developed countries and there higher income and efficient business

Question 20

what does Environmental costs entail

Answer 20

lack of sustainability, increased greenhouse gas emissions, ocean acidification, deforestation (and other forms of habitat loss or destruction), climate change, and the introduction of invasive species

Question 21

What does trade deficit entail

Answer 21

A trade deficit occurs when a nation imports more than it exports.

Question 22

what does greater risk of external shocks entail

Answer 22

As countries become more inter-dependent if one country goes into a recession another country could get dragged along with it

-This can also happens in industries such as banking

Question 23

What is an example of greater risk of external shocks

Answer 23

An example of this is the banking crisis in 2008 which started in the US but spread through out the global

Question 24

what does less cultural diversity entail

Answer 24

same kinds of good and services in different countries therefore countries start to loss there individualism

Question 25

what is an example of a trade deficit

Answer 25

In 2018 the United States exported $2.500 trillion in goods and services while it imported $3.121 trillion, leaving a trade deficit of $621 billion.