Exam (elaborations)
AQA Economics - Paper 2 - The Global Economy 2024 Exam Questions and Answers
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- AQA A LEVEL Economics
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- AQA A LEVEL Economics
AQA Economics - Paper 2 - The Global Economy 2024 Exam Questions and Answers
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AQA Economics - Paper 2 - The GlobalEconomy 2024
Exam Questions and Answers
What are the main characteristics of globalisation? - Answer>>
Free movement of capital and labour across International
boundaries, free trade between countries and the availability of
technology and intellectual capital to be used on an international
scale
In the last 50 years, why has the scale and pace of globalisation
increased? - Answer>> Trade liberalisation - removal of tariffs
etc. may negotiate these with WTO.
WTO raised standards on global products - to increase consumer
confidence in imported goods
Reduction in cost and time needed - for transportation of goods.
Cheaper to import and export. E.g. could be due to larger cargo
ships
Improvements in communication - e.g. internet makes trade
easier and cheaper
MNC's wishing to increase profits - might built a factory in and
LEDC for cheap labour. Increase in FDI from MNC's
Firms expanding overseas - wish to exploit economies of scale
More MNC's with influence - more international trade and
investment as influence grows
Governments wanting benefits of International trade - e.g. govt
might want to provide incentives for foreign firms to invest in their
country
The opening of markets to trade and investment - e.g. after
collapse of USSR economy opens up and globalisation increases
through more trade
Growth in international trading blocs
Increased investment by sovereign states - Norway invests some
oil revenues in foreign companies
, International specialisation - best at making in one country
encouraging international trade
What are some cultural and political factors involved in
globalisation? - Answer>> International bodies e.g. UN lead to
more joint decision between countries and firms - cultural
globalisation e.g. McDonalds
International trade becoming a greater proportion of all trade and
de-industrialisation of MEDC's for industrialisation of LEDC's are
both characteristics
What are the reasons for big firms setting up companies in
emerging countries? - Answer>> Cheap labour and same
technology and skills needed to produce products
Which factors attract MNC's to invest in a country? - Answer>>
Cheap raw material and labour, good transport links, access to
different markets and pro-foreign investment governments
What are some things globalisation and trade encourage? -
Answer>> specialisation in economies to create comparative
advantage in that country (more efficient than another country at
making a certain product), trade makes bigger markets so
economies of scale are more present and World GDP has risen
as a result of globalisation
What are some drawbacks of globalisation? - Answer>> Some
prices rise as world incomes rise so there is sometimes excess
demand, Specialisation can lead to overreliance on markets - e.g.
Venezuela over-reliance on oil revenue (not a specialised markets
but the reliance is there :D) and individuals firms could be
outcompeted by foreign firms
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