Theme 4:4.1:Globalisation

Question 1

define globalisation.

Answer 1

a process by which the world’s economies are becoming more closely intergrated.

Question 2

characteristics of globalisation.

Answer 2

Free trade
Free movement of capital between countries
Free movement of labour
Free interchange of technology and intellectual capitalism

Question 3

what are the factors contributing to globalisation?

Answer 3

-trade in goods
-trade in services
-Multinational companies (MNCs)

Question 4

what is an MNC?

Answer 4

multinational company they have grown in number and size and large MNCs have the economy of scale and technological knowledge to make products that are cheap and technologically advanced

Question 5

what are the impacts of globalisation on consumers?

Answer 5

+greater consumer choice due to many different products available
+leads to a fall in price on some goods and services
+raises incomes so consumers can buy more goods
-may raise prices as incomes are increasing

Question 6

what are the impacts of globalisation on workers?

Answer 6

+increased employment in the developing world
+economic migrants can travel for jobs
-decreased employment in the developed world
-more competition between skilled and unskilled workers

Question 7

what are the impacts of globalisation on producers?

Answer 7

-increased specialisation increases risks when trade links break down
+may reduce risk as firms are able to source products from a wider variety of countries and sell into more countries
+allows firms to source products from a wider variety of countries
+MNCs can engage in tax avoidance

Question 8

what are the impacts of globalisation on the government?

Answer 8

-can crate an economic problem e.g. car plant moving from UK to China leaves the UK with fewer jobs
-less tax revenue as MNCs evade tax

Question 9

what are the impacts of globalisation on the environment?

Answer 9

-depletion of resources at a faster rate
-increased emissions of greenhouse gases

Question 10

define deglobalisation

Answer 10

the process of contracting interdependence and intergration between businesses and countires

Question 11

when can deglobalisation occur?

Answer 11

-rise of populists politics and return to protectionism
-shift towards bi-lateral and regional trade deals and a decline in the influence of the WTO
-economic nationalism such as dispute over vaccine exports
-businesses shifting away from reliance on extended global supply chains