Globalisation

Question 1

Define Globalisation:

Answer 1

“[Globalisation] is the closer integration of the countries and peoples of the world which has been brought about by the enormous reduction of costs of transportation and communication, and the breaking down of artificial barriers to the flows of goods, services, capital, knowledge, and people across borders.”

Question 2

Factors affecting international competitiveness
include:

Answer 2

o Inflation

relative
to
trading
partners
o Wages
relative
to
trading
partners
(e.g.
minimum
wage
may
decrease
competitiveness)
o Productivity
(labour,
multifactor)
o Changes
in
the
exchange
rateo Inflation
relative
to
trading
partners
o Wages
relative
to
trading
partners
(e.g.
minimum
wage
may
decrease
competitiveness)
o Productivity
(labour,
multifactor)
o Changes
in
the
exchange
rate