Globalisation Flashcards
What is globalisation?
The growing integration of the worlds economies
What factors contribute to globalisation?
-reduction of trade barriers
-political change
-reduce cost of transport
-migration
-increase investment flows
What is trade liberalisation?
When governments decide to remove international trade barriers such as tariffs, quotas and regulations
What are tariffs?
tariff is a tax imposed by the government of a country
What are the pros and cons of tariffs?
Pros- benefit general public because the revenues from tax can be used for public services
Cons-make imported products more expensive,
What is a quota?
Annual limit on the quantity of a good that can be sold in an oversea market
Why are TNCs gaining increased significance?
They make significant contributions to world economy.
They represent 2/3 of global exports
They make huge global investments
