4.1.3 Factors Contributing to Increased Globalisation

• What is one of the primary factors contributing to increased globalisation?

  Technological advancements
• The growth of multinational corporations (MNCs) is a key factor driving globalisation
• Political stability and international cooperation are essential for increased globalisation.
• How have technological advancements fuelled globalisation?

  Businesses can expand operations
• The internet and mobile devices have revolutionised communication, facilitating instant messaging and video conferencing
• Email is a digital messaging method that is fast and cost-effective.
• What innovation in transportation has reduced transit times and costs?

  Containerisation
• Deregulation reduces government control over industries, fostering competition and innovation.
• Match the type of free trade agreement with its features:

  Bilateral ↔️ Between two countries

  Multilateral ↔️ Among many countries

  Trading Blocs ↔️ Agreements within a region
• What role do multinational corporations (MNCs) play in globalisation?

  Drive economic growth
• MNCs can exploit resources but also create jobs in host countries.
• The market capitalisation of an MNC is calculated using the number of outstanding shares and the share price.
• What is the primary benefit of containerisation in transportation?

  Reduced handling costs
• Air freight offers fast transportation but may be more expensive than sea shipping.
• Arrange the factors contributing to globalisation in order of their primary impact on businesses:

  1️⃣ Technological advancements

  2️⃣ Deregulation and free trade policies

  3️⃣ Growth of multinational corporations (MNCs)

  4️⃣ Transportation improvements

  5️⃣ Political stability and international cooperation
• What is one benefit of fast transportation by air?

  Reduced transit times
• Shipping involves large-scale transportation by sea
• Technological advancements in communication and information technology facilitate global trade and business expansion.
• What is the purpose of just-in-time inventory management?

  Reduce storage costs
• Innovations like containerisation and improved aircraft have reduced transportation costs
• Match the transportation method with its key feature:

  Containerisation ↔️ Standardised shipping containers

  Air Freight ↔️ Fast transportation by air

  Shipping ↔️ Large-scale transportation by sea
• Standardised shipping containers reduce handling costs.
• What is one advantage of air freight in transportation?

  Increased reliability
• Shipping provides economies of scale and lower costs
• Order the key areas of impact of technological advancements on globalisation:

  1️⃣ Communication

  2️⃣ Transportation

  3️⃣ Information Technology
• What are two key features of modern communication methods like email and video conferencing?

  Fast and cost-effective
• The cost reduction from improved communication can be calculated as: Old Communication Costs - New Communication Costs
• Match the communication method with its key feature:

  Traditional Mail ↔️ Physical delivery

  Email ↔️ Digital messaging

  Video Conferencing ↔️ Real-time visuals
• Traditional mail is considered trustworthy due to its physical delivery.
• What is one benefit of email over traditional mail?

  Fast and cost-effective
• Video conferencing enhances clarity and engagement
• What is one example of a transportation innovation that reduces transit times?

  Containerisation
• How is transit time reduction calculated?

  Old Transit Time - New Transit Time
• Advanced IT systems help businesses manage global supply chains and track inventory.
• Transportation innovations like containerisation reduce transit costs
• Free trade policies lower trade barriers like tariffs and quotas.
• What is an example of a bilateral free trade agreement?

  US-Korea Free Trade Agreement
• A bilateral free trade agreement is between two countries
• Match the type of free trade agreement with its example:

  Multilateral ↔️ NAFTA

  Trading Blocs ↔️ ASEAN

  Bilateral ↔️ US-Korea Free Trade Agreement
• What is one potential drawback of free trade policies?

  Job losses in domestic industries