Globalisation

What is globalisation?

What are the reasons for globalisation?

Fewer Tariffs and Quotas, Reduced Cost of Transport, Reduced cost of

communication, Increased significance of multinationals

What is the impact of globalisation and global companies?

Individual countries, Governments, Producers, Consumers, Workers, The

Environment

Multinational Companies and Foreign Direct Investment

What are multinational companies?

What is foreign direct investment (FDI)?

What are the reasons for the emergence of MNCS/FDI?

Economies of scale, Access to natural resources/cheap materials, Lower transport

and communication costs, Access to customers in different regions

What are the advantages of MNCS/FDI?

Job creation, Investment in infrastructure, Developing skills, Developing Capital,

Contributing to taxes

What are the disadvantages of MNCS/FDI?

Tax Avoidance, Environmental damage, Moving profits abroad

International Trade

Why is international trade done?

Obtaining goods that cannot be produced domestically, Obtaining goods that can
be bought more cheaply from overseas, Selling off unwanted commodities
What are the advantages of free trade?

Lower prices and increased choice for consumers, Lower Input prices, Wider
markets for business

What are the disadvantages of free trade?

Competition for domestic businesses, Unemployment

Protectionism

What is protectionism?

What are the reasons for protectionism?

Preventing Dumping, Protecting Unemployment, Protecting Infant Industries, To

gain tariff revenue, Preventing the entry of harmful or unwanted goods, Reduce
Current account deficits, Retaliation

What are the methods of protection?

Tariffs, Quotas, Subsidies

What is the impact of tariffs, quotas and subsidies on markets?

Trading Blocs

What is a trading block?

What are the different types of trading blocs?

Preferential trading areas, Free trade areas, Customs unions, Common Markets,
Economic Unions,

What is the impact of trading bloc on member states? (Advantages and Disadvantages)

What is the impact of trading blocs on non-member states?

Give examples of some of the trading blocs.

 NAFTA (North American Free Trade Agreement), ASEAN (Association of
Southeast Asia Nations), SACU (South African Customs Union)

The World Trade Organization and World Trade Patterns

What is the role of the world trade organization?

Trade Negotiations, Implementation and Monitoring, Settling Trade Disputes,

Settling Trade Disputes, Building Membership

What are the criticisms of the WTO?

What are the world trade patterns?

Increase in world trade, Trade in developed countries, Trade in developing

countries