Globalisation

• What is globalization defined as?

  A process where national economies integrate and become interdependent
• Why are integration and interdependence important aspects of globalization?

  They show countries are closer and rely on each other
• What has reduced trade barriers between nations?

  Trade liberalization
• What organization plays a key role in trade liberalization?

  The World Trade Organization
• How do trading blocs contribute to globalization?

  They bring nations closer together
• What is TTIP?

  Transatlantic Trade and Investment Partnership between the EU and US
• What does TPP stand for?

  Trans-Pacific Partnership
• How has technology influenced globalization?

  Easier transport and communication for businesses internationally
• How has the internet helped globalization?

  It has made it easier for businesses to operate globally
• What factors have increased labor and capital mobility?

  Trading blocks and government policies
• What is one of the main arguments for globalization's benefits?

  Great increase in international trade
• How do lower prices relate to globalization?

  Increased international competition puts downward pressure on prices
• What is the impact of market access and size on consumers?

  Greater consumer choice and welfare
• How do businesses benefit from globalization in terms of raw materials?

  Access to raw materials from different locations
• How has globalization affected economic growth for countries?

  Huge benefits from greater growth
• What are the benefits of trade for developing countries?

  Promoting economic development
• What is a key benefit of increased market size due to globalization?

  Greater employment
• How does employment relate to higher incomes?

  Higher incomes increase with employment
• How do firms benefit from larger economies of scale?

  Increased output and lower costs
• How does movement ease for workers?

  Advancements in technology, transport, and government policy
• What has made it easier to attract foreign investments?

  Technology advancements and loose government policy
• What does FDI stand for?

  Foreign direct investment
• How does FDI impact a nation?

  Leads to economic growth and increased employment
• What is a downside of globalization?

  Growing inequality
• According to the text, what percentage of global wealth did the top 1% own in 2015?

  55%
• What is the risk when a nation integrates with others but struggles to compete?

  Greater structural unemployment
• How does pollution relate to globalization?

  More growth has led to more pollution
• What happens when foreign firms take advantage of resources and deplete them?

  Future generations will suffer
• What can result from relying on export-led growth?

  Trade imbalances
• What do trade imbalances like current account deficits and surpluses lead to?

  Protectionist policies
• What is a risk with increased global integration?

  Greater risk of external shocks
• What happened in 2008 related to banking?

  Banking crisis spread worldwide
• What is a negative consequence of increased globalization in terms of culture?

  Loss of cultural diversity
• What tends to be seen with more globalization?

  Countries losing their own identities
• How do deeper trading blocs influence member nations?

  Nations become more like one entity
• What impact do technological advancements have on global trade?

  Easier transport of goods and services
• How does government policy support globalization?

  Encourages migration and capital spread
• How does trade benefit governments?

  Through greater tax revenues
• How are employment and living standards related?

  Increased employment raises living standards
• How do higher profits from economies of scale affect firms?

  Stimulate investment and innovation