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What is globalisation?
What is globalisation?
The ever increasing integration of the world’s local, regional and national economies into a single international market.
What factor has contributed to more trade between nations?
What factor has contributed to more trade between nations?
_________ are organisations which own or control the production of goods and services in multiple countries.
_________ are organisations which own or control the production of goods and services in multiple countries.
Multinational Corporations (MNCs)
What role does the World Trade Organisation (WTO) play in globalisation?
What role does the World Trade Organisation (WTO) play in globalisation?
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Technological knowledge has led to higher costs of production.
Technological knowledge has led to higher costs of production.
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What is one consequence of globalisation in individual countries?
What is one consequence of globalisation in individual countries?
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Which of the following has resulted in it becoming cheaper to ship goods across the world?
Which of the following has resulted in it becoming cheaper to ship goods across the world?
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Globalisation has resulted in improved levels of cultural diversity.
Globalisation has resulted in improved levels of cultural diversity.
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Name a service that has increased in trade from developing countries to developed countries.
Name a service that has increased in trade from developing countries to developed countries.
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Match the following concepts with their descriptions:
Match the following concepts with their descriptions:
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Study Notes
Characteristics of Globalisation
- Globalisation refers to the integration of local, regional, and national economies into a single international market.
- It facilitates the free trade of goods and services, the movement of capital and labor, and the sharing of technology and intellectual capital.
- Increased trade and foreign direct investment (FDI) are hallmarks of globalisation, leading to brands operating on a global scale and a division of labor across countries.
- Greater interdependence among countries means national economic performance is influenced by global conditions, evident during the 2008-2009 global credit crunch.
Factors Contributing to Globalisation
- Trade in Goods: Developing countries have gained capabilities to manufacture goods, supported by efficient transport that lowers costs of international trade.
- Trade in Services: Growth in service sectors like tourism and software production, particularly in India, enhances trade between developed and developing countries.
- Trade Liberalisation: The World Trade Organisation (WTO) has reduced trade barriers, promoting free trade and strengthening global markets.
- Multinational Corporations (MNCs): MNCs control production in multiple countries, achieving economies of scale and reducing production costs through global marketing.
- International Financial Flows: Increased capital movement, FDI, and foreign ownership have transformed economies; countries like China and Malaysia benefit from these flows.
- Communications and IT: Advances in IT make global communication faster and cheaper, enhancing interconnectedness and facilitating trade.
- Containerisation: Standardised containers make shipping goods more efficient and cost-effective, dramatically speeding up cargo movement and aiding competitive markets.
Consequences of Globalisation
- Trade Imbalances: Nations can maintain significant trade deficits or surpluses, like the US's deficit with China and China's surplus.
- Income and Wealth Inequalities: Globalisation may lead to uneven distribution of benefits, creating disparities in access to health, education, and wealth within countries, evident in China’s urban-rural divide.
- Cultural Impact: While some argue that globalisation leads to cultural homogenization and loss of diversity, others see the positive spread of culture improving quality of life.
- Sovereignty Concerns: Increased globalisation may diminish government control over national policies, impacting sovereignty.
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Description
Dive into Topic 6 of AQA Economics A-level focusing on the international economy and globalisation. This quiz covers the characteristics and impacts of globalisation, including trade, capital movement, and technology exchange. Test your understanding of these crucial concepts in the world economy.
