4.3.1 - Causes and effects of globalisation

Increase in trade as a proportion of GDP. globalisation.

Use a - increase in trade as a proportion of gdp. globalisation to connect the rule to the data and decision in the question.

This matters because a - increase in trade as a proportion of gdp. globalisation determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - increase in trade as a proportion of gdp. globalisation to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Increase in trade as a proportion of GDP. globalisation is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Increase in importance of transnational companies (TNCs) and foreign direct investment (FDI).

Use b - increase in importance of transnational companies (tncs) and foreign direct investment to connect the rule to the data and decision in the question.

This matters because b - increase in importance of transnational companies (tncs) and foreign direct investment determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - increase in importance of transnational companies (tncs) and foreign direct investment to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Increase in importance of transnational companies (TNCs) and foreign direct investment is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Increase in migration.

Use c - increase in migration to connect the rule to the data and decision in the question.

This matters because c - increase in migration determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - increase in migration to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Increase in migration is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Factors contributing to increased globalisation in the last globalisation 50 years:; trade liberalisation; increased number and size of trading blocs; political change (breakdown of the Soviet system and opening up of China); reduced cost of transport and communications; increased significance of TNCs.

Use a - factors contributing to increased globalisation in the last globalisation 50 years: • to connect the rule to the data and decision in the question.

This matters because a - factors contributing to increased globalisation in the last globalisation 50 years: • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - factors contributing to increased globalisation in the last globalisation 50 years: • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Factors contributing to increased globalisation in the last globalisation 50 years: • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

FDI by TNCs:; reasons for FDI; the impact of FDI on recipient countries.

Use b - fdi by tncs: • reasons for fdi • the impact of fdi on recipient countries to connect the rule to the data and decision in the question.

This matters because b - fdi by tncs: • reasons for fdi • the impact of fdi on recipient countries determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - fdi by tncs: • reasons for fdi • the impact of fdi on recipient countries to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - FDI by TNCs: • reasons for FDI • the impact of FDI on recipient countries is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Possible benefits of globalisation: globalisation; increased economic growth; increased tax revenue; economies of scale; lower prices and higher consumer surplus; more choice; higher living standards.

Use a - possible benefits of globalisation: globalisation • increased economic growth • to connect the rule to the data and decision in the question.

This matters because a - possible benefits of globalisation: globalisation • increased economic growth • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - possible benefits of globalisation: globalisation • increased economic growth • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Possible benefits of globalisation: globalisation • increased economic growth • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Possible costs of globalisation:; displaced workers; exploitation of workers; environmental impact of increased trade; loss of tax revenue from transfer pricing; increased income inequality within countries; the influence of TNCs on domestic economic policy.

Use b - possible costs of globalisation: • displaced workers • exploitation of workers • to connect the rule to the data and decision in the question.

This matters because b - possible costs of globalisation: • displaced workers • exploitation of workers • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - possible costs of globalisation: • displaced workers • exploitation of workers • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Possible costs of globalisation: • displaced workers • exploitation of workers • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.