Globalistion

Question 1

What role do the International Monetary Fund, World Bank and the World Trade Organisation play in globalisation?

Answer 1

Lend money to low income countries and helps countries to negotiate lower trade barriers

Question 2

What are 5 causes of Globalisation?

Answer 2

Reduction in trade barriers -> protectionism and trading blocs
Improved transportation-> containerisation
Technology-> improved communication
Growth of MNCs

Question 3

What are 4 advantages of globalisation?

Answer 3

1) low inflation and interest rates
2) may reduce problems of aging population
3) higher profits in western economies
4) more g and s available

Question 4

What are 4 disadvantages of globalisation?

Answer 4

1) more competition for resources employment and growth
2) workers may be taken advantage of
3) immigrants may add to public welfare costs
4) increased damage to the environment

Question 5

What is globalisation?

Answer 5

The increasing interdependence and intergration of the world’s economy

Question 6

What are 4 main arguments in support of trading blocs?

Answer 6

• bigger potential market, benefits of economies of sale
• trade creation
• cheaper g and s ( from removal of tariffs)
• free movement of labour

Question 7

What are 4 disadvantages of trading blocs?

Answer 7

• Trade diversion leads to a less efficient allocation of resources
• distortion of comparative advantage
• diseconomies of scale may occur
• increased competition may lead to job losses