Globalisation

Question 1

Causes Of Globalisation?

Answer 1

Reduced Communication Costs - Easier for international firms and consumers to communicate, encouraging the exchange of goods and services on a global level as firms can understand overseas consumer behaviours

Free Trade - Cheaper for firms to export goods to other countries, making them more competitive to international consumers, encouraging them to be purchased over domestically produced goods

Question 2

Define Globalisation

Answer 2

The process by which businesses or other organizations develop international influence or start operating on an international scale

Question 3

Consequences Of Globalisation

Answer 3

Increase in trade
Can create jobs in developing countries
Can cause structural unemployment in developed countries
Exploitation Of Resources - causes pollution

Question 4

Advantages Of Specialisation

Answer 4

Higher productivity from greater expertise in a field = economies of scale = lower costs

Export-led growth

Question 5

Disadvantages Of Specialisation

Answer 5

Structural Unemployment = cost to government

Risk if global demand falls

Question 6

Factors Influencing Pattern Of Trade between countries

Answer 6

Comparative advantage
Exchange Rates
Trade Agreements
Relative Inflation

Question 7

What are patterns of trade?

Answer 7

The composition and direction of a country’s imports and exports