Factors contributing to increased globalisation

Overview

Trade liberalisation and trading blocs, political change in Eastern Europe and China, reduced transport and communication costs, the growth of transnational corporations and FDI, migration and the global labour force, and structural change.

What you need to know

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Questions from this subtopic

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1. 1

   What is trade liberalisation?

   Model answer

   The reduction or removal of tariffs, quotas, and other barriers that restrict the free flow of goods and services between countries.

2. 2

   If a country removes all import quotas on manufactured goods, what type of policy change is this an example of?

   Model answer

   Trade liberalisation.

3. 3

   How does the World Trade Organization (WTO) promote trade liberalisation?

   Model answer

   By negotiating multilateral agreements to reduce trade barriers between member nations.

4. 4

   How do regional trading blocs such as the European Union and NAFTA/USMCA contribute to globalisation?

   Model answer

   They reduce trade barriers between member countries, facilitating increased trade flows.

5. 5

   How did the collapse of communist regimes in Eastern Europe contribute to globalisation?

   Model answer

   It opened previously closed economies to international trade and foreign investment, integrating them into the global market system.

6. 6

   How have China's economic reforms contributed to increased globalisation?

   Model answer

   China opened to world markets and foreign investment, becoming a major participant in international trade and global supply chains.

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