Trade in the Global Economy

Question 1

different modes of globalisation

Answer 1

• trade in goods, services, technology
• trade in financial assets
• migration
• FDI

Question 2

example of trade in goods

Answer 2

energy bills rising due to trade in raw materials such as oil and gas

Question 3

example of trade in services

Answer 3

outsourcing of UK companies to indian call centres

Question 4

example of trade in technology

Answer 4

sharing the COVID vaccine

Question 5

example of trade in financial assets

Answer 5

invest outside UK stocks in emerging markets or US stock market

Question 6

explain migration pre and post brexit

Answer 6

• pre-brexit many migrated to UK from Eastern Europe
• post-brexit eastern europeans migrated back home
• reverse migration trend compared to pre-brexit

Question 7

example of FDI

Answer 7

multinational corporations (MNCs) set up un UK

Question 8

is the US an open economy

Answer 8

not very open compared to countries such as china, germany and UK
- trade counts for 13% GDP so US relies on trade less

Question 9

define ‘tariffs’

Answer 9

tax charged on import duties

Question 10

why have tariffs declined since WWII

Answer 10

lead to reduced trade, higher prices for consumers and retaliation from abroad