Globalisation pt2

Question 1

De-globalisation

Answer 1

A process in which countries or regions become less integrated with the global economy. It involves a reduction in the value of the flow of goods, services, capital, information and people across borders. It is characterised by a shift away from increased economic interconnectedness and openness

Question 2

What can cause De-globalisation

Answer 2

-Protectionism-e.g. import tariffs and quotas
-Economic downturns can cause an economy to focus on domestic priorities and reduce reliance on global trade and investment
-Changing trade agreements-changing or withdrawing from agreements that promote globalisation
-Global health crises like COVID
-Government may adopt polices to protect domestic industries and jobs even if it reduces international trade.

Question 3

Examples of external shocks in the global economy

Answer 3

-The global financial crisis(2007-10)
-COVID pandemic (2020-22)
-Volatile world commodity prices