4.1.3

• What is a key feature of globalisation related to trade?

  Global trade of goods and services allows companies to sell products worldwide.
• How does labour mobility contribute to globalisation?

  Labour mobility allows people to work and live in any country of choice, creating multinational societies.
• What is the impact of interconnected economies on globalisation?

  A financial crisis in one country can affect other nations due to interconnected economies.
• What does free capital flow allow individuals and businesses to do?

  Free capital flow allows businesses and individuals to use banking systems across borders.
• How does technology exchange facilitate globalisation?

  Technology exchange allows patents and technology to be recognized and used globally.
• What is trade liberalisation?

  Trade liberalisation is the reduction of trade barriers, such as removing tariffs and quotas.
• What role does the World Trade Organization (WTO) play in globalisation?

  The WTO promotes free trade and open markets worldwide.
• How did political changes after 1991 contribute to globalisation?

  The end of communist rule allowed countries like Russia and Eastern European nations to join global trade.
• What were the effects of China’s economic reforms from the 1970s to the 1990s?


  China’s economic reforms increased its participation in global trade and boosted its economy.
• How has containerization impacted global trade?

  Containerization reduces shipping costs, theft, and insurance while speeding up transportation.
• What advancements have made global business easier?

  Low-cost airlines and technology advancements, such as remote work via the internet, have made global business easier.
• What are multinational corporations (MNCs)?

  MNCs are global companies that operate in many countries and contribute to GDP.
• How can small businesses contribute to globalisation?

  Small businesses can supply larger MNCs, contributing to globalisation.
• What is foreign direct investment (FDI)?

  FDI is when businesses invest in foreign operations, such as building factories or buying shares.
• How does migration contribute to globalisation?

  Migration allows people to move across borders for work or residence, bringing new cultures and filling labour gaps.
• What was the growth of the global labour force from the 1980s to 2010?

  The global labour force grew from 1.7 billion in the 1980s to 2.9 billion by 2010.
• How does increased employment affect global trade?

  Increased employment leads to higher disposable income, more consumption, and global trade.
• What is structural economic change?

  Structural economic change is a long-term shift in the economy, such as the move from manufacturing to services.
• What sectors have boosted globalisation through innovations?

  Sectors like finance, education, and IT have boosted globalisation through innovations like social media and internet technologies.
• How have political changes impacted globalisation?

  Political decisions now occur on a global scale, shifting from protectionist policies to open trade among countries.
• What does liberalisation mean in the context of globalisation?

  Liberalisation refers to the removal or reduction of barriers on the free exchange of goods between nations.
• What are transnational corporations (TNCs)?


  TNCs are multinational companies that operate across borders.
• What is the definition of foreign direct investment (FDI)?

  FDI is investment made by a business into another country, such as setting up factories or purchasing shares.
• What is migration in the context of globalisation?

  Migration is the movement of people to settle in another location temporarily or permanently.
• What does structural change refer to in an economy?

  Structural change refers to a long-term shift in the economy, such as the move from manufacturing to services.