Causes of Globalisation

Question 1

Define 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. Globalisation has increased the production of goods and services.

Question 2

What 4 ways do TNC’s contribute to Globalisation

Answer 2

1) Manufacturing by outsourcing to maximise profits
2) Foreign direct investment
3) Improvements in Transport eg just in time production
4) Advances in technology + communication

Question 3

What 6 main factors accelerate globalisation ?

Answer 3

1) Technology/communication
2) Consumer demands
3) Transport
4) Investment: direct,inward
5) Golcalisation
6) TNCs

Question 4

What are some economic benefits of Globalisation

Answer 4

1) Free Trade
2) Free Movement of Labour
3) Increased Investment
4) Greater choice of products

Question 5

What does Globalisation involve?

Answer 5

• Greater free trade.
• Greater movement of labour.
• Increased capital flows.
• Growth of Multi-national companies.
• Increased integration of global trade cycle.
• Increased communication and improved transport
• Reducing barriers between countries.

Question 6

What are some negatives of Globalisation

Answer 6

1) Free Trade can Harm Developing Economies
2) Environmental Costs (pollution)
3) Less Cultural Diversity (westernisation)
4) Labour exploitation (low wages etc)
5) Two speed world (gap between rich+poor)

Question 7

How do TNCs grow?

Answer 7

1) Motive by maximising profit + controlling costs
2) Means from financial backing eg FDI
3) Mobility by improved transport + communication

Question 8

What are the 2 case studies of TNCs

Answer 8

Disney and Tesco