M20 Unit 2 Factors Contributing to Economic Globalisation

What are the key features of a capitalist economy?

• State ownership of all resources

• No competition among businesses

• Private ownership, free markets, competition, profit motive, limited government intervention

• Central planning of the economy

Compare and contrast capitalism and communism in terms of economic growth.

• Capitalism and communism have identical growth rates because as exemplified by the US and China, they can both enjoy economic success.

• Communism encourages competition, leading to higher economic growth than capitalism, which exerts additional government control upon the economy.

• Capitalism generally promotes faster economic growth than communism due to competition and innovation, while communism may limit growth due to reduced incentives.

• Capitalism restricts innovation, resulting in slower economic growth compared to communism.

What were the main goals of China's reform and opening up policy?

• To improve China's declining international image and attract foreign investors.

• To promote technological advancements by importing from other more developed countries.

• To promote agricultural production, exports and imports.

• To modernize the economy, increase foreign investment, and improve living standards.

How has e-commerce changed the way businesses operate globally?

• E-commerce has limited businesses to local markets only.

• E-commerce has transformed global business operations by expanding market reach, reducing costs, and enhancing efficiency.

• E-commerce has increased operational costs for global businesses.

• E-commerce has made it harder for businesses to communicate with customers.

What advancements in transportation have facilitated global trade?

• air freight

• Bicycle couriers

• Steam-powered trains

• enhanced infrastructure

What role do international organisations play in promoting free trade?

• International organizations bans all strict trade barriers and opens up the global market for all countries.

• They help to form military alliances between countries and promote world peace.

• International organizations offer platforms for country leaders to voice their opinion politically and thus promotes cooperation.

• International organizations facilitate trade agreements and promote economic cooperation among countries.

How has information technology contributed to economic globalisation?

• The growth of information technology has provided more job opportunities worldwide. More individuals travel, invest and work around the world.

• Information technology has made global trade more expensive and complex.

• Information technology has decreased the speed of international transactions.

• Information technology has accelerated communication, reduced costs of production, and enhanced global business operations.

How do capitalist ideologies influence international trade policies?

• Capitalist ideologies promote protectionism and trade restrictions.

• Capitalist ideologies focus solely on local markets and ignore global trade.

• Capitalist ideologies encourage free trade, reduce trade barriers, and promote globalization.

• Capitalist ideologies discourage competition among nations.

What impact did the rise of international organisations have after the Cold War?

• International organizations diminished the role of national governments.

• International organizations led to increased military conflicts.

• The rise of international organizations fostered global cooperation and stability.

• The rise of international organizations caused economic isolationism.

Discuss the significance of transportation development in globalisation.

• Transportation development has no impact on cultural exchange.

• Transportation development increases trade barriers and costs.

• Transportation development is significant in globalization as it enhances trade efficiency, reduces costs, and promotes cultural exchange and economic integration.

• Transportation development only benefits developed countries.