Globalisation Cambridge IGCSE Business Studies revision
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In plain words
A phone designed in one country, with parts from six others, assembled in an eighth and sold everywhere: that is globalisation. The world's economies have become tied together by trade, investment and the movement of people.
It has made many goods cheaper and created millions of jobs, and it has also closed factories and added to pollution.
5 things to know
- Globalisation is the increasing integration and interdependence of the world's economies.
- Causes: fewer trade restrictions, lower transport costs, lower communication costs, and the growth of multinational companies.
- Effects on trade and competition: more international trade, more competition, lower prices and greater choice for consumers.
- Effects on jobs and incomes: new jobs and rising living standards where production moves to, but traditional industries close where it moves from.
- Other effects: more migration of workers, and more pollution from transport and from production in countries with weaker rules.
Tips and tricks
- "Interdependence" is the word that earns the definition mark: countries have come to rely on one another.
- Globalisation creates winners and losers inside each country. A balanced answer names one group that gains and one that loses.
It lands in your notebook with its questions as flashcards.
Globalisation: 5 questions and answers
These are the quiz’s questions. Do the quiz first, then come back here for the ones that got you.
Which is a cause of globalisation?
The internet lets firms organise production and sales across the world.
Which is a benefit of globalisation to consumers?
Goods are made wherever it is cheapest, and firms compete worldwide.
How may globalisation harm the environment?
Shipping and flying goods around the world burns fuel.
Globalisation makes countries more
Each relies more on others for goods, markets and investment.
Which is a likely effect of globalisation on a developing country that attracts foreign firms?
Foreign firms set up factories and hire local workers.
Quiz
5 questions
Tap an answer and you’ll see straight away whether it’s right, and why.
Worksheet
3 questions, 8 marks. Write your answers on paper, then check them.
Globalisation
Cambridge IGCSE Business Studies 0450 · 8 marks · papermunch.org
Name ______________________________ Date ______________
Define globalisation.[2]
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The process by which the world's economies become more integrated and interdependent, through trade, investment and the movement of people.
Explain two causes of globalisation.[3]
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Lower transport costs, such as container shipping, make it cheap to move goods around the world. Fewer trade restrictions, such as lower tariffs, make imports cheaper and trade easier.
Explain one disadvantage of globalisation for workers in a high-wage country.[3]
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Firms may move production to countries where wages are lower. Factories in the high-wage country close, and their workers become unemployed.
Answers: Globalisation
- 1. The process by which the world's economies become more integrated and interdependent, through trade, investment and the movement of people.
- 2. Lower transport costs, such as container shipping, make it cheap to move goods around the world. Fewer trade restrictions, such as lower tariffs, make imports cheaper and trade easier.
- 3. Firms may move production to countries where wages are lower. Factories in the high-wage country close, and their workers become unemployed.