Globalisation

Question 1

Causes of globalisation - 7 points

Answer 1

Trade liberalisation

Transportation

Growth in international trading blocs

Growth of MNCs

Technological advancement/ better communications technology

Increased mobility of labour and capital

Increased international specialisation and comparative advantge

Question 2

Globalisation

Answer 2

is a process in which national economies become increasingly integrated and interdependent.

Question 3

Main characteristics of globalisation - 4 points

Answer 3

Increased interconnectedness
(e.g. the growth of global supply chains means that a product made in one country may include components from several other countries. A study by the McKinsey Global Institute in 2017, 80% of global trade in goods was part of a global value chain.)

Rapid technological advancements
(e.g. a report by the International Telecommunication Union, by the end of 2020, there were 4.7 billion active internet users around the world. )

Greater cultural exchange
(e.g. the popularity of K-pop music has spread to many countries around the world)

Growing environmental awareness
(e.g. the 2015 Paris Agreement on climate change was signed by 196 countries, demonstrating a global commitment to reducing greenhouse gas emissions and mitigating the effects of climate change.)

Question 4

POSITIVE Consequences of globalisation on LEDCs - 5 points

Answer 4

Economic growth
Job creation
Technology transfer
Access to capital
Improvements to infrastructure

Question 5

NEGATIVE Consequences of globalisation on LEDCs - 8 points

Answer 5

Vulnerability to Global Economic shocks

Dependency on Global Markets

Cultural Erosion

Environmental Impact (negative externalities)

Exploitation of Labor (hence theres a limited effect on standards of living)

Income inequality within country
(only some individuals and regions benefit from globalisation)

Economic growth is not distributed evenly

Technological advancements not distributed evenly, widens ‘digital divide’, exacerbating existing disparities.

Question 6

Positive Consequences of globalisation on MEDCs

Answer 6

Economic Growth (larger markets means expanded trade, foreign investment, and the flow of capital so leads to economic growth)

Job Creation and Innovation (broader consumer base and so fosters competition, driving innovation and efficiency.)

Access to Resources ()

Question 7

Negative Consequences of globalisation on MEDCs

Question 8

Role of MNCs in globalisation

Question 9

Foreign direct investment

Answer 9

An investment made by a firm or individual in one country into business interests located in another country