Globalisation 4.1.3

Question 1

What is globalisation?

Answer 1

The increase in integration and cooperation between countries and the growth of international trade

Question 2

Transport and communications

Answer 2

Transport and communication networks have improved significantly, making the sharing of data much faster and the transportation of goods much cheaper. People can reach parts of the globe much faster and more cheaply than ever before.

Question 3

What are the features of globalisation that lead to business integration and interdependence.

Answer 3

• Multicultural society - the sharing and merging of cultures
  • Goods and services traded throughout the world
  • The flow of capital between countries
  • Collaboration between countries
  • Economic interdependency between countries

Question 4

Migration

Answer 4

Migration leads to cultures being imported and therefore the demand for new products but migrants often send a proportion of the money they earn back to their home country.

Question 5

Trade barriers

Answer 5

There has been a gradual reduction in the level of trade barriers across the globe and the growth of trade blocs such as the EU and ASEAN

Question 6

Political

Answer 6

Political reform and political stability have given rise to democracy across the world and better trade relations between countries, allowing globalisation to take place.

Question 7

FDI

Answer 7

Investments across the globe through FDI mean countries and businesses have an interest in economic affairs in all parts of the world.

Question 8

Labour force

Answer 8

The global population increases the size of the labour force. This, in turn, increases global demand for products and the number of entrepreneurs setting up businesses that trade globally.