Macroeconomics theme 4

Question 1

what is globalisation?

Answer 1

The process in which countries are becoming more intercontected.

Question 2

what are some causes of globalisation? (Name 3)

Answer 2

Trade in good, Trade in service, Trade liberalisation, Multinational companies, International Financial Flow, Communication & IT, Mobility of labour and capital, Technological advancement

Question 3

what is trade liberalisation?

Answer 3

country lowers it’s tariffs, taxes and relaxes import quotas for other countries in the same union.

Question 4

What is a multinational companies?

Answer 4

A company with significant product operation in at least 2 countries e.g: MacDonald’s.

Question 5

What are some benefits of Globalisation?

Answer 5

+ Provides greater choice for consumers,
+ Lower cost which can transfer to lower price for consumers,
+ Raises income for consumers> consumers have more money to spend> increase in GDP> improve living standards.
+ specialisation
+ exploit economies of scale