4.1.3 Factors Contributing To Increased Globalisation Flashcards Preview

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Flashcards in 4.1.3 Factors Contributing To Increased Globalisation Deck (10)
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1
Q

What are the 8 factors causing increased globalisation

A
  1. Trade liberalisation (removal of trade barriers)
  2. Political change
  3. Structural change
  4. Increasing population
  5. Migration
  6. Increasing FDI
  7. Increase in global companies (MNC’s and TNC’s)
  8. Better access to transport and communication
2
Q

Explain how trade liberalisation has led to increased globalisation

A
  • a reduction in regulations, tariffs and quotas
  • encourages international trade and globalisation
    + imports become cheaper
    + exporting goods becomes easier
    + greater consumer choice
3
Q

Disadvantages of trade liberalisation

A
  • the lower prices of imports may force domestic business out
  • people feel that trade liberalisation removes national cultures
4
Q

How can political change increase globalisation

A
  • governments may remove legislation that discourages international trade
  • trading blocs reduce trade barriers
5
Q

How can structural change lead to globalisation

A
  • as a country develops, reliance on primary and secondary sectors fall and tertiary and quarternary sectors
  • this creates a higher demand for goods and services opening them up for international trade
6
Q

How does an increasing population contribute to increased globalisation

A
  • a greater global workforce makes it easier for firms to set up where they want with less restrictions due to lack of labour
7
Q

Explain how increased migration has caused an increase in globalisation

A
  • people that love create a new demand for products in the area they move to
  • businesses can also move abroad easier as skilled staff are willing to move
8
Q

How is FDI increasing globalisation

A
  • governments that ant to obtain the benefits of FDI are offering firms financial incentives
    -this increases FDI therefore increasing globalisation
9
Q

How has an increase in global companies increased globalisation

A
  • MNCs and TNC’s boost the economies that they work in by offering more employment
  • this increases the standard of living and disposable income that increases demand and spending
10
Q

How has improvements in transport and communication increased globalisation

A
  • reduction in cost and time for transportation encourages importing and exporting
  • technology and the internet means that communication is quick and easy between countries making it more convenient