globalisation

Question 1

defintion

Answer 1

globalisation is the increased incterconcectivness and intergation of countries in the globe

Question 2

charchteristics of globalisation

Answer 2

• free flow of labour and capital
  -free flow of goods and service
  -share of knowlegdge and technology and interlectual property
• ## interdependance between countries

Question 3

reasons for emerging markets

Answer 3

-moving away from primary sector industries
-cheaper labour
-improving productive capapcity ( LRAS 0
increased quality life
movment towards free market economy

drive growth in global economy finaicially attractive due to low costs of labour

although in long run wages of workers will rise growing economy, become customers of business

examples: brazile greece and china

Question 4

reasons for globalisation

Answer 4

-deregulation of markets
deregulation of markets means law and regulations are reduced making costs fir firms cheaper attracting producers into the market increasing competition

• trade liberisation
  the effect of the WTO promoting free trade and reducion of protectionist policies increasing trade between countries

-internet/ tech
customers are able to find goods/ services they want from foreign markets much easier and demand goods/ services from foreign markets
sped up access to info making businesses more productive
ablle to buy things from abroad online due to electronic payments

• improbed communiations
  able to have operations anyhwhere in the world e.g. MNC’s might have call centres abroad, able to communicate easiy
  able to communicate with customers ans other businesses via social media attract cusomers
• reduced transports costs
  containerisation, being able to ship goods quickly and efficiently, reducing costs for businesses and consumers
• consumer tatses, increased demand for foreign imports/ goods

Question 5

globalisation increasing competition

Answer 5

• deregualtion of markets attracting foreign firms to enter the UK market supplying at a lower price which encourages UK firms to increase competition and reduce costs although this may involve making reduncancies to reduce costs, reducing job security

Question 6

opportunities for growth

Answer 6

-increase of mergers/ MNC’s able to access new markets, larger target markets supplying to larger population, able to increase production and benefit from economies of scale reducing costs

• able to access cheapest supplers and reuduce costs and increase profits
• able to advertise and promote business to a wider range increasing customers sales and market share

-developing economies becoming more dveloped as their cheap labour is dribing their economy

• access to cheaper labour increasing productivity decreasing costs

-can create a global brand