Globalisation And Trade Restrictions
Overview
The phone in your pocket may have been designed in one country, built from parts made in several others, and sold worldwide. That is globalisation: economies woven ever more tightly together. Yet many governments still put up barriers to trade. Why?
In this lesson you will learn what drives globalisation, its effects on trade, competition, the environment and people, the role of multinational companies, and the main trade restrictions: tariffs, quotas, subsidies and embargoes. By the end you will be able to weigh the benefits of open trade against the case for protection.
Objectives
- causes of changes in globalisation: - changes in trade restrictions - changes in transport costs - changes in communication costs - movement of multinational companies (MNCs)
- effects of changes in globalisation on: - international trade - competition - the environment - migration - income distribution - economic development
- MNCs and their advantages and disadvantages to host countries and home countries
- tariffs
- import quotas
- subsidies
- embargoes
Lesson Note
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Lesson Evaluation
Congratulations on completing the lesson on Globalisation And Trade Restrictions. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.
You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.
Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.
- A tariff is best described as: A. a quantity limit on imports B. a tax on imports C. a ban on trade with a country D. a payment to foreign firms Answer: B
- An import quota reduces imports by: A. taxing them B. setting a physical limit on the quantity allowed in C. subsidising them D. banning them completely Answer: B
- A complete ban on trade with a particular country is called: A. a tariff B. a quota C. an embargo D. a subsidy Answer: C
- Which has driven the increase in globalisation? A. higher transport costs B. more trade restrictions C. falling communication costs D. fewer multinational companies Answer: C
- A disadvantage of an MNC for a host country is that it may: A. create jobs B. bring in investment C. force local firms out and repatriate profits D. raise tax revenue Answer: C
Available on the Green Bridge App
Download the Green Bridge CBT app on your phone or computer to access full lesson notes, practice questions, and more.
Available on the Green Bridge App
Download the Green Bridge CBT app on your phone or computer to access full lesson notes, practice questions, and more.
Recommended Books
Practice Mock Questions
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