Globalisation

Question 1

What are the causes of globalisation

Answer 1

Improvements in transport

Improvements in It

Containerisation

Trade liberalisation

Question 2

What does improvement in IT lead to

Answer 2

Increased international movement of capital

Question 3

What does improvement of transport lead to

Answer 3

Increased movement of labour

Question 4

What effect does containerisation have on a supply and demand diagram?

Answer 4

A shift in supply to the right meaning that price decreases and quantity demanded increase

Question 5

What does containerisation lead to

Answer 5

An increase in international trade

Question 6

What is trade liberalisation?

Answer 6

The decrease in trade barriers

Question 7

What impacts does globalisation have on individual countries?

Answer 7

+ Increase in living standards

• Increase in overdependence

Question 8

What are impacts of globalisation on governments?

Answer 8

+ increase in tax revenues

• Tax avoidance (TNCs have daughter companies in countries with different tax regulations so they are able to pay less tax)

Question 9

What is the impact of globalisation on producers?

Answer 9

+ decrease production costs

• High barriers to entry for smaller businesses

Question 10

Impacts of globalisation on consumers?

Answer 10

+ Wider choice and lower price (increase in international trade)

• Decrease in happiness (Consumers are more driven to own things that they cannot own)

Question 11

Impact of globalisation on workers

Answer 11

+ increase in opportunities

• structural unemployment (when the structure of an economy has changed and people working In a sector may lose their job due to changes)