globalisation

Question 1

what is the definition of globalisation?

Answer 1

globalisation refers to the freer movement of goods, services, investment, ideas and people around the world. globalisation is best defined as a process of deeper economic integration between countries.

Question 2

what are the causes of globalisation?

Answer 2

• liberalisation of markets to the flow of goods, services and investment
• technology
• multinational corporations

Question 3

what are the positives of globalisation?

Answer 3

• improved economic welfare
• more variety
• lower prices
• increased competition
• access to foreign investment

Question 4

what are the negatives of globalisation?

Answer 4

• imposes costs on poorer economies
• income inequality increases
• job losses
• environmental damage
• child labour
• erodes democracy

Question 5

what are the economic indicators of globalisation?

Answer 5

• exports of goods and services

- inward FDI net inflows

Question 6

what are the social indicators of globalisation?

Answer 6

• fixed internet subscribers
• mobile phones
• international tourist arrivals

Question 7

what is the first australian link?

Answer 7

goods and services increase

Question 8

what is the second australian link?

Answer 8

tourism is now the 11th largest and education is the 4th largest

Question 9

what is the third australian link?

Answer 9

global economy has lead to immigration which increased skilled labour and stimulated population growth

Question 10

what is the fourth australian link?

Answer 10

foreign investment complimented domestic saving and funded GDP

Question 11

what happened in the second half the last century?

Answer 11

rapid growth in world trade

Question 12

what happened to exports between 1990 and 2013?

Answer 12

increased 500%

Question 13

what happened to world GDP between 1990 and 2013?

Answer 13

increased 70%

Question 14

why has their been a surge in world exports since 2002?

Answer 14

rapid industrialisation in developing countries

Question 15

what is the relationship between trade and economic growth?

Answer 15

their is a positive relationship. a rise in world trade results in rising per capita income

Question 16

what percentage of GDP was exports in 1990 and 2013 respectively?

Answer 16

20% then 30%

Question 17

how much has GDP per capita increased since 1990?

Answer 17

60%

Question 18

what has increased trade density resulted in?

Answer 18

it has been an important catalyst for increased real income and living conditions

Question 19

what are multinational companies?

Answer 19

very large firms with headquarters in one country and subsidiaries in one or more other countries

Question 20

how are MNC’s important drivers of globalisation?

Answer 20

they embody simultaneously the international transfer of capital, highly skilled labour, technology, and final and intermediate products

Question 21

why do firms expand into foreign markets?

Answer 21

increase sales, market share and profits. benefits the recipient country through transfer of technology and benefits the parent firm through boosting the global brand. also gets rid of the disadvantages of exporting.

Question 22

what are the benefits of MNC’s?

Answer 22

• inflow of investment
• assists the host company
• improves quality of production

Question 23

what are the costs of MNC’s?

Answer 23

• exploit the market and reduce local competition

- profits flow back to the home not the host company

Question 24

what are the controversial issues concerning MNC’s?

Answer 24

offshoring/outsourcing