Topic Three, Part 4 - Global Context Flashcards
1
Q
What four factors contribute to increasing globalisation?
A
- Increase in trade
- Increased capital movement
- Increase in immigration
- Increase in the availability of knowledge
2
Q
What are the advantages of globalisation?
A
- economies of scale
- availability of cheap goods
- job creation in LDCs
- brings in foreign currency to LDCs
3
Q
What are the disadvantages of globalisation?
A
- exploitation of LDCs
- jobs lost as productions moved
4
Q
What are the advantages of globalisation to TNC’s?
A
- new markets
- cheap labour
- fewer regulations
- incentives from governments
5
Q
What are the benefits of international trade?
A
Exchange capital, goods and services between countries.
6
Q
What does VEGIS mean?
A
The benefits of international trade
7
Q
What does VEGIS stand for?
A
- Variety
- Economic efficiency
- Growth
- International cooperation
- Specialisation
8
Q
What is Free trade?
A
When firms can buy and sell abroad easily
9
Q
Why are trade barriers present?
A
- Prevent industries being undercut by cheap imports.
- Protect infant industries
10
Q
What kinds of barriers to free trade exist?
A
- Restrictions on quantity of imports
- Tax on imports
- Imports have to conform to regulations
11
Q
What are exchange rates?
A
the value of a currency in terms of another
12
Q
What is the foreign exchange market?
A
- A market where currencies are traded.
increased demand increases value
