Economics Unit 3 Globalization Revision OCR GCSE

Hi, these are some notes which I put together which helped me get my A*. Good luck

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Globalisation Introduction
09 April 2012
12:35
· Trade has always been means of acquiring a good which a country does not possess.
· The G8 includes eight of the largest industrialised countries: Canada, France, Germany, Italy,
Japan, Russia, the UK and the USA whom meet to discuss matters of global concern. There is a
move to expand the group to include countries such as China, India, Brazil and South Africa.
· A way to measure the importance of trade to a country's economy is by the ratio of trade to
gross domestic product (GDP).
· Trade is relatively unimportant to some countries such as the USA with a ratio of 27.3,
whereas the UK comes third of eight with a ratio of 57.6.
· UK has specialised in services such as Finance, Banking and Insurance.
· In 1909 the UK's exports were based on heavy industry such as Shipbuilding, Iron and steel,
coal and engineering.
· Globalisation and trade works best when there are few or no barriers to trade. Responsibility
for this lies with the World Trade Organization, which has 153 member countries representing
more than 95trade. % of the world
· Globalization has been controversial because it has resulted in large changes in where goods
are produced. This has been associated with the rise of China and India as major economic
powers and the rapid development of other countries.
· It is generally though that globalisation heads to economic growth, and thus an overall rise in
living standards. This can be seen by the increase in the variety of goods and services available
to the vast majority of people in the UK
Economics Page 1

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What do countries trade - Globalisation
10 April 2012
17:17
· What is globalisation
Globalisation is the rapid expansion of world trade in goods and services leading to
greater international interdependence.
To produce goods and services many large firms have emerged which produce goods in
a number of different countries and sell in a world market - these are called
multinational companies.…read more

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Multinationals
09 April 2012
13:36
· What is a multinational company?
A company that has its headquarters in one country but operations all over the world - they are
very big organizations examples are Ford, Toyota, Shell, BP, Microsoft etc.
Multinationals account for
20% of production in the global economy
50% of world's imports
· Why become a MNC
Successful companies require high quality products at low cost.…read more

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International specialisation and trade
09 April 2012
13:36
International trade has grown because countries are better at producing different products and can gain by
trading these for products that other countries are good at producing.
What is meant by specialisation
· Being better than another country at providing a good or service, in terms of the quantity of output and
lower costs.…read more

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The world trade organisation
09 April 2012
13:36
What is meant by free trade
· 1930 countries tried to deal with world recession by putting barriers to trade in order to protect home
industries and employment which made it more difficult for the world to recover as demand for goods
and services declined and people in export industries became unemployed.…read more

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Patterns of trade
09 April 2012
14:33
Exports and imports
· Exports consist of goods and services which UK forms provide and sell to people and firms
not resident in the UK and results in money coming into the UK for example someone from
Japan flies to Manchester on British Airways and then book into a hotel in the Lake District
and pays a present to take place the exports are:
The flight which is a service provided by a UK company
The hotel, another…read more

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Protectionism
09 April 2012
14:33
What is protectionism and tariffs
· Protection - where an action is taken that reduces international trade
· Tariff - a tax placed on imports to increase the price and reduce the quantity demanded.
Why protect some industries
· Infant industries
Countries often claim they have a potential advantage in an industry if only they
could develop it so they need to protect industries in other countries, so that it can
grow.…read more

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D s1
s
P
P1
Q1 Q
Quota
· This is a physical limit on the number of goods imported into a country, it could be a stated
number or it could be a percentage of the total market for example in terms of Japanese cars the
manufacturers are limited to 11% of the total European Market for imports from outside the EU.…read more

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Economics Page 9…read more

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China and India
09 April 2012
14:33
How will the growth of China and India affect world trade
· There has been a massive increase
· There is a high demand for imports in both countries due to the large population - i.e. there
is a large consumer market.…read more

Comments

Shiv

Thanks for the notes they will help a lot :)

samir

anyone got an exam on Monday help needed!

email [email protected] 

Thanks 


Demi

In the spec it says "evaluate the role of mncs in globalisation' what does this mean? Like what do they want us to talk about.

reeceb0017

Hi I love this it is absolutey grate. using it for my Maths GCSE to learn quadratics

reeceb0017

Hi I love this it is absolutey grate. using it for my Maths GCSE to learn quadratics

reeceb0017

Hi I love this it is absolutey grate. using it for my Maths GCSE to learn quadratics

reeceb0017

Hi I love this it is absolutey grate. using it for my Maths GCSE to learn quadratics

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