1.1 Globalisation

Question 1

Characteristics?

Answer 1

1) Improved technology
2) CA + Specialisation
3) Increased FDI
4) Rise of MNCs

Question 2

What is globalisation?

Answer 2

Process in which economies become inter-connected through global trade

Question 3

Causes of globalisation?

Answer 3

1) Containerisation
2) Trade Liberalisation
3) Tech advancements

Question 4

Impact on producers?

Answer 4

1) Increased competition
2) Access to larger market
3) Economies of scale
4) Lower unit costs

Question 5

Impact on governments?

Answer 5

1) Less control over domestic policy
2) Exposure to external shocks
3) Changing tax revenues

Question 6

Impact on consumers?

Answer 6

1) Structural unemployment
2) Lower prices
3) Increased choice
4) Vulnerable to supply chain disruptions

Question 7

Impact on the environment?

Answer 7

1) Environmental degradation
2) Spread of green tech
KUZNETS curve (pollution vs economic development)

Question 8

Drawbacks of globalisation?

Answer 8

• Trade imbalances
• Low wages + unemployment
• Foreign competition
• Dominant MNCs

Question 9

Policies to reduce negative effects of globalisation?

Answer 9

• Protectionism
• Expansionary monetary policy
• Expansionary fiscal policy
• Supply-side policy