Political and economical decision making

Question 1

What are free trade policies?

Answer 1

Policies with no restrictions over imports and exports.

Question 2

What are Special Economic Zones?

Answer 2

Areas with financial or tax incentives to attract foreign direct investment.

Question 3

What is free-market liberalisation?

Answer 3

The lessening of government regulations and restrictions over the economy.

Question 4

What is privatisation?

Answer 4

The transfer of assets from the public to the private section (the government gives rights over something to a private company)

Question 5

What is foreign direct investment?

Answer 5

Investment made by an overseas organisation based in another country.

Question 6

What are subsidies?

Answer 6

Grants given by governments to increase the profitability of key industries.

Question 7

Example of a trade block

Answer 7

European Union and ASEAN.

Question 8

How have political and economic organisations such as the World Trade Organisation, International Monetary Fund or the World Bank contributed to globalisation?

Answer 8

Through the promotion of free trade policies and foreign direct investment.

Question 9

How can governments protect their industries from globalisation?

Answer 9

Demanding a payment of taxes and tariffs on imported goods, making them expensive.
Using quotas to limit the volume of imports, protecting home producers from foreign competition.
Banning foreign firms from operating in services like banking, retail and insurance.
Restricting or banning foreign companies from investing in their country.