GLOBALISATION

Question 1

GLOBALISATION DEFINITION

Answer 1

The increasing integration of economies internationally, which is making the world more like a single economy.

Question 2

FACTORS CONTRIBUTING TOWARDS GLOBALISATION IN THE LAST 50 YEARS

Answer 2

➣International bodies tend to lead to a convergence of political decisions (more joint decisions between countries).
➣ Cultural globalisation eg. McDonald’s.
➣ International trade becomes a bigger proportion of all trade
➣ Increase in financial capital flows between countries
➣ More countries involved in international trade
➣ More international division and movement of labour
➣ More developed countries

Question 3

CHARACTERISTICS OF GLOBALISATION

Answer 3

➣Free movement of capital and labour across international boundaries
➣Free trade in goods and services
➣Availability of technology on a international scale

Question 4

BENEFITS OF GLOBALISATION

Answer 4

➣Encourages specialisation in certain goods and services.
➣Larger markets, can lead to EOS
➣Can lead to lower costs for the customers due to producers EOS
➣Greater choice of goods and services for the customers
➣Increased growth and employment, helps macro objectives.

Question 5

DRAWBACKS OF GLOBALISATION

Answer 5

➣Countries becoming too interdependent
➣Can lead to global imbalances
➣Individual firms may be outcompeted by foreign firms and go out of business