(9) Globalisation

Question 1

What is globalisation?

Answer 1

It is the growing integration of the world’s economies.

Question 2

What are the features of globalisation?

Answer 2

• Goods and services are traded freely across international borders.
• People are free to live and work in any country they choose.
• There is a high level of interdependence between nations.
• There is free exchange of technology and intellectual property.

Question 3

What are the reasons for globalisation?

Answer 3

• Development in technology.
• Huge amounts of deregulation.
• An increase in tourism.
• Domestic markets have become saturated.

Question 4

How can governments interfere with globalisation?

Answer 4

• Countries can’t trade if international borders are closed.
• International trade will be very limited if governments put up trade barriers.
• People can’t live and work where they want if international borders are kept open.

Question 5

What opportunities can globalisation provide for businesses?

Answer 5

• Access to larger markets
• Lower costs
• Access to labour
• Reduced taxation

Question 6

How can globalisation threat some businesses?

Answer 6

• The increased competition can make it harder for smaller businesses.
• International takeovers can happen.
• International shocks could happen.