Globalisation

Question 1

define globalisation

Answer 1

the opening of international borders to the flow of trade, investment, immigration, information and technology

Question 2

what are the 3 types of globalisation + examples

Answer 2

1. Trade in goods and services (exports and imports)
2. Movement in Financial Capital (foreign investment)
3. Movement in People (tourists, students, workers)

Question 3

what are the 2 major drivers/indicators of globalisation

Answer 3

1. increased trade openness

2. growth of foreign direct investment

Question 4

define trade openness

Answer 4

ratio of a country’s trade to GDP (trade as a percentage of GDP) indicating how integrated a country is with the rest of the world

Question 5

what is the impact of increased trade openness

Answer 5

rapid economic growth which gives incentive to improve productivity and cost competitiveness (eg East Asia - japan, Korea)

Question 6

what is the impact of foreign direct investment

Answer 6

opening of domestic economies to foreign direct investment has seen growth in the role of the Multinational firm

Question 7

discuss a recent period of slobalisation and its causes

Answer 7

decade post GFC (2010) in which countries put on protectionist policies as well as barriers/tarriffs on people and goods

Question 8

what is the most globalised counrty in the world and where is aus

Answer 8

switzerland, aus 25