Theme 4 - 4.1.3 - Factors Contributing To Increased Globalisation

Question 1

What is Globalisation ?

Answer 1

Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange

The biggest companies are no longer national firms but multinational coroporations with subsidies in many countries

Global markets are international markets created by firms exporting, importing and offshoring

Question 2

Trade Liberalisation defined ?

Answer 2

Trade liberation is the process by which international trade is made easier through relaxation of tariffs and barriers

Question 3

What are the factors that contribute to globalisation ?

Answer 3

• Reduction of international trade barriers
• Political change
• Reduced cost of transport and communication
• Increased significance of global companies
• Increased investment flows (FDI)
• Migration
• Growth of the global labour force
• Structural change

Question 4

What is trade liberalisation or gates ?

Answer 4

The gov wants to protect their domestic businesses so they use tariffs and legal regulations to slow the rate of imports coming into a country

They might want to stop the imports as they will compete with state monopolies

And liberisation is just easing these measures so that more imports can come and therefore more globalisation

Question 5

What are the benefits of trade liberalisation ?

Answer 5

• Trade liberalisation is the process of taking down the barriers to trade between nations
• Consumers benefit forum this as liberised trade can help lower prices and broaden the range of quality of goods available - as they are now allowed to buy
• Trade openness also means, competition, investment and increased in productivity
• The main industries in Uganda that have benefitted: Sugar, beverages, tobacco, cotton, textiles, cement and steel production

Question 6

Drawbacks of trade liberalisation?

Answer 6

• Competition can intensify between businesses, between nations and profit margins can end up being squeezed
• Employment that has been created by lower trade, may only be temporary or menial
• Increased trade can mean pollution or over-cultivation of land to keep up with new demand
• Developing nations can become economically depending on industrialised ones

Question 7

How does Political change has led to increased globalisation of markets ?

Answer 7

• Politics used to be only carried out by individual governments who wanted to product the interests of their country
• Politics now happens on a global scale with regular meetings between heads of state, summits, where power devolved to governments in tradings blocs such as the EU and organisations such as the WTO
• This has l;ed to less protectionist policies ( tariffs quotes ) and more open trade between nations. The planet is now one market.