Globalisation

Question 1

Advantages of globalisation

Answer 1

Global market- trade can occur around the world, so because trade can happen around the world, sales go up
Foreign trade- trading things around the world that can only be found in your country

Question 2

Disadvantages of globalisation

Answer 2

Fluctuations- prices go up and down due to competition for resources, so prices are inconsistent

Question 3

Protectionism measures

Answer 3

Protectionism is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations.

Question 4

Advantages of protectionism

Answer 4

If a country is trying to grow strong in a new industry, tariffs will protect it from foreign competitors

Protectionism also temporarily creates jobs for domestic workers. The protection of tariffs, quotas or subsidies allows domestic companies to hire locally.

Question 5

Disadvantages of protectionism

Answer 5

Protectionism leads to retaliation and therefore higher import prices and higher consumer prices

Higher prices lead to lower overall demand causing job losses in other industries