Globalisation

Question 1

Globalisation

Answer 1

The removal of barriers to all the movement of goods, services, people and ideas across national borders

Question 2

Linkages between economies

Answer 2

Foreign investment- multilateral (TPP), regional (APEC), bilateral (Aus w. China)

Tourism- an export leisure (Olympics immediate positive associations, stimulation from building, business events (tax revenue through deals), school groups.

Immigration- managed migration, protecting refugees, security through border management, migrant and refugee status

Trade- stimulus to increase wealth and living standards

Question 3

Why trade has increased

Answer 3

Success of WTO, IMF, World Bank

Improvements in transport and communication

Question 4

Globalisation has

Answer 4

Minimised labour costs
Increased access to natural resources
Helps firms gain large economies of scale
Takes advantage of govt policies
Minimises transport costs
Increased flexibility in decision making

Question 5

Aus globally significant industries

Answer 5

Agricultural products top 15
International tourism 11th
Fuels and mining in top 4
Foreign students 4th
Investment funds assets 3rd

Question 6

Changes to ways products are produced

Answer 6

Global value chains= part-produced in many countries= exploitation of competitive advantage

Change in location of a product production eg. Aus clothing in Bangladesh

Structure of companies and development of MNC’s and joint venture operations

Question 7

Examples of global value chains

Answer 7

Boeing 787- assembled in Seattle, parts around the world inc. Melbourne

Nutella- produced in Aus from local and imported goods

Question 8

What happened to consumption

Answer 8

G. Created higher living standards
In China, India, Indonesia= growth in demand for consumer goods

Eg. Estimated trade between China and India alone will account for almost 1/5 of global trade by 2020

Question 9

Example of new export market to China

Answer 9

Fresh milk

Takes less than 7 days from farm

Question 10

Changes in Pattern of world trade and foreign investment

Answer 10

Rise in change intermediate goods

Question 11

Globalisation is facilitated by

Answer 11

Govt policy changes towards freer markets with open trade and investment flows

Advances on transport technologies products transported reliably, efficiently, much reduced cost

Increased communication ideas, design, knowledge and info shared with great speed

Increased communication

Question 12

Barriers to trade are reduced by

Answer 12

Barriers of trade reduced through-
unilateral action (Aus reducing tariffs on cars)
Regional trade agreements (free trade agreements Aus&jpn&korea&china)
Treaties promoted by global institutions (WTO)
Political reform and growth of market based economies (Eastern Europe following USSR outward orientation of China and India)