Understanding Globalisation and Trade

What is globalisation?

• Globalisation is the process of increased interconnectedness and interdependence among countries.

• Globalisation refers to the decline of international trade.

• Globalisation is the process of countries becoming more self-sufficient.

• Globalisation is the isolation of countries from each other.

How does free trade benefit countries?

• Free trade leads to job losses in all sectors.

• Free trade restricts access to foreign markets.

• Free trade increases government regulations on businesses.

• Free trade benefits countries by increasing efficiency, lowering prices, improving product quality, and fostering innovation.

What are the main arguments for protectionism?

• Reducing tariffs on imports

• Promoting global competition

• The main arguments for protectionism include protecting domestic jobs, supporting local industries, ensuring national security, and correcting trade imbalances.

• Encouraging free trade agreements

Name one advantage of globalisation.

• Decreased cultural exchange between countries.

• Increased economic growth through trade.

• Higher tariffs on international trade.

• Increased unemployment due to outsourcing.

What is a tariff?

• A tariff is a tax on imports or exports.

• A tariff is a regulation on product quality.

• A tariff is a subsidy for local businesses.

• A tariff is a type of trade agreement.

How can free trade lead to economic growth?

• Free trade leads to economic growth by promoting specialization, increasing productivity, expanding markets, and fostering innovation.

• Free trade increases tariffs and limits market access.

• Free trade reduces competition and leads to economic stagnation.

• Free trade encourages monopolies and decreases consumer choice.

What are some negative effects of globalisation?

• Increased job security

• Reduction in global trade barriers

• Job losses, cultural homogenization, increased inequality, environmental degradation.

• Cultural diversity enhancement

Define protectionism in your own words.

• Protectionism is a strategy to promote global competition.

• Protectionism is the elimination of tariffs and trade barriers.

• Protectionism encourages free trade among all countries.

• Protectionism is the practice of restricting international trade to protect local businesses.

What is the role of the World Trade Organization (WTO)?

• To set global environmental standards.

• To provide loans to developing countries.

• To regulate domestic labor laws.

• The WTO's role is to promote and regulate international trade.

How do trade agreements impact global trade?

• Trade agreements are only beneficial for developing countries.

• Trade agreements have no effect on international relations.

• Trade agreements increase tariffs and reduce trade volume.

• Trade agreements facilitate and enhance global trade by lowering barriers and fostering cooperation.