Theme 4- Factors contributing to increased globalisation

Question 1

Factors that increase globalisation

Answer 1

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

Question 2

What can international trade be restricted by?

Answer 2

International trade barriers like tariffs and quotas

Question 3

What is trade liberalisation?

Answer 3

The reduction and removal of trade barriers

Question 4

Who is used to help negotiate trade agreements and promotes trade trade liberalisation?

Answer 4

WTO

Question 5

Advantages of trade liberalisation

Answer 5

• Lower costs for imported raw materials (will
  lower firm costs, makes it more competitive)
• Easier and cheaper export opportunities (more
  markets for firms to expand into)
• Access to wider range of international products
• Increased competition leads to cheaper prices for
  consumers

Question 6

Disadvantages of trade liberalisation

Answer 6

• Reduces cost of imports ( Domestic businesses
  forced out which can increase unemployment
• removal of national cultures

Question 7

Why does a political change increase globalisation?

Answer 7

• Restrictions to international trade may be
  removed if the political system changes to one
  that supports trade liberalisation.
• Increased trade lead to increased globalisation

Question 8

What are the different industries within an economy?

Answer 8

• Primary
• Secondary
• Tertiary
• Quarternary

Question 9

Which two industries create growth and more demand for goods and services?

Answer 9

Tertiary and quarternary

Question 10

Benefits of the increase of tertiary and quarternary industries

Answer 10

• Higher rates of return for investors
• Firms are likely to be specialised so have highly
  skilled staff
• These firms often need to trade internationally
  which leads to global recruitment

Question 11

Why does a growing population increase globalisation?

Answer 11

• Global labour force is rising
• Firms have more freedom to set up business
  operations wherever

Question 12

Why does migration increase globalisation?

Answer 12

People may create a new demand for certain products in the place they move to