Globalisation MCQ 2
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Questions and Answers

What is one of the key consequences of globalisation?

  • The reduction of international trade
  • The decline of multinational companies
  • Increased economic independence among nations
  • The interdependence of economies upon one another (correct)

    • Which of the following has contributed to the increased flow of goods and services across borders?

  • Decreased availability of transportation
  • Increased trade between countries (correct)
  • The Internet (correct)
  • All of the above

    • What is an example of a 'global product'?

  • A standardised product such as an Apple iPhone (correct)
  • A locally sourced fruit
  • A traditional Indian sari
  • A bespoke suit made in London

    • What has facilitated increased labour mobility?

    <p>Increased availability and affordability of transportation</p> Signup and view all the answers

    What is the role of the World Trade Organisation?

    <p>To promote international trade</p> Signup and view all the answers

    What is a key advantage for firms investing in Ireland due to its education system?

    <p>Emphasis on science education</p> Signup and view all the answers

    Why might a US firm choose to locate in Ireland?

    <p>To access the EU market</p> Signup and view all the answers

    What is a key attraction of Ireland for foreign investment?

    <p>Low corporation tax</p> Signup and view all the answers

    Why might a firm invest in a less developed country?

    <p>To take advantage of lower costs of production</p> Signup and view all the answers

    What is a benefit of Ireland's location for foreign investors?

    <p>English speaking population</p> Signup and view all the answers

    Study Notes

    Definition of Globalisation

    • Globalisation involves the flow of goods, services, people, culture, and knowledge across international borders.
    • It represents the interdependence of economies on each other and the interconnections between countries worldwide.

    Factors Contributing to Globalisation

    • The Internet has enabled instant communication between firms and individuals, facilitating global connections.
    • Increased international trade has been promoted by the World Trade Organisation and trade deals between countries.
    • Improved transportation infrastructure, such as air travel, has increased labour mobility and the transport of raw materials.
    • The growing presence of multinational companies, like Apple and Google, has contributed to globalisation.
    • The proliferation of standardised "global products", such as the Apple iPhone, has also driven globalisation.

    Foreign Direct Investment

    • Investment refers to the production of capital goods or capital formation

    Reasons to Invest Abroad

    • Lower corporation tax in host country (e.g. 21% in US vs 15% in Ireland)
    • Access to skilled labor (e.g. Ireland's emphasis on science education attracts pharmaceutical firms)
    • Access to markets (e.g. US firms locate to Ireland to access EU markets, reducing transport costs and trade barriers)
    • Lower costs of production (e.g. in less developed countries)
    • Grants and incentives offered by host country

    Advantages of Locating in Ireland

    Low Corporation Tax

    • Ireland has a corporation tax rate of 15%

    Skilled Workforce

    • Ireland's education system has promoted STEM fields in recent years

    Access to EU Market

    • Ireland offers free access to the EU market

    Language Advantage

    • Ireland is the only English-speaking country in the EU since Brexit

    Infrastructure

    • Modern infrastructure in Ireland includes motorways, broadband, airports, energy supply, and water supply

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    Description

    This quiz covers the concept of globalisation, its effects, and the factors that contribute to it, including the internet and international trade.

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