Ch53 Globalisation

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What is globalisation?

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Globalisation is the process by which the world has become increasingly interconnected through trade, communications, and cultural exchange.

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What are some causes of globalisation?

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Causes of globalisation may include a reduction in global trade restrictions, advances in communications technology and automatic data interchange, lower cost of international transport due to economies of scale, and fewer restrictions on the free movement of business in the global economy.

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What is a free trade area?

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A free trade area is where members agree to remove all trade restrictions among themselves.

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What is a customs union?

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A customs union is where members agree to free trade among themselves and to erect a common external tariff on imports from non-members.

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What is a monetary union?

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A monetary union is where members agree to free trade, a common external tariff, the free movement of labour and capital, some common policies, and a common currency.

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What is a full economic union?

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A full economic union has the features of a monetary union with additional common economic policies and an intention to move to a federation of states.

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What are some consequences of globalisation for low-income and lower middle-income countries?

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Consequences may include more opportunities to trade with higher middle-income and high-income countries, increased export revenue, opportunities to develop international tourism, and a stimulus for economic growth and development.