Globalisation

Question 1

Economic globalisation

Answer 1

The increasing economic integration and interdependence of economies through cross-border movement of goods,services,technologies and capital

Question 2

6 causes of economic globalisation

Answer 2

MNC effect 
Spatial differences
Capital/Labour mobility 
ICT and communications
Destruction of trade barriers and opening of markets (trade openness has risen from 15%-60% in industrialised economies)
Global finance system

Question 3

4 characteristics

Answer 3

$38 billion of trade
Increased transfers of capital and labour
Interdependence
Spatial differences

Question 4

4 advantages to developed nations

Answer 4

Access to finance from world bank’s
Greater consumer choice
Access to cheaper imports
Monopolies get access to international competitiveness

Question 5

4 disadvantages to developed nations

Answer 5

Tax avoidance + competition (Qatar 10%) creates downward pressure
Structural unemployment
Macroeconomic instability
Capital outflows

Question 6

3 advantages to developing economies

Answer 6

Comparative advantage
Convergence theory encourages FDI due to diminishing returns (Dangote cement 52%)
Free rider effect

Question 7

4 disadvantages to developing economies

Answer 7

Undeveloped economies vulnerable (maize gap)
Can worsen equality (Coco growing to $400billion industry but farmer/manufacture share shrinks 16-6%)
Environmental cost (industrialisation)
Cultural decay