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6.2. Globalisation and trade restrictions

Syllabus
0455–2027–2028
Topic
6.2
Level
—

6.2.1—Definition of globalisation

  • Definition of globalisation

6.2.2—Causes and consequences of changes in globalisation

  • 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

6.2.3—Role of multinational companies (MNCs)

  • MNCs and their advantages and disadvantages to host countries and home countries

6.2.4—Types of trade restrictions / methods of protection

  • tariffs
  • import quotas
  • subsidies
  • embargoes

6.2.5—Reasons for trade restrictions

  • protect infant (sunrise) industries
  • protect declining (sunset) industries
  • protect strategic industries
  • avoid dumping
  • reduce a deficit on the current account of the balance of payments
  • raise tax revenue
  • restrict the import of demerit goods
  • promote environmental sustainability

6.2.6—Consequences of trade restrictions

  • impact of trade restrictions on the home country and its trading partners
  • advantages and disadvantages of restricting free trade

Objective notes

6 learning objectives
ConceptIGCSE Economics