Edexcel IGCSE Economics 2.2.1 globalisation
Use globalisation questions to define interdependence, explain lower trade costs and evaluate MNC or FDI effects from data.
- Syllabus
- First assessment 2019
- Course
- Economics 4EC1
Exam points
- Recognise globalisation as integration and interdependence between economies.
- Explain how lower transport costs, communication costs and trade barriers increase trade.
- Evaluate benefits and costs for workers, consumers, countries or MNCs using data.
Covered syllabus points
2.2.1 Globalisation question 1
[Maximum number: 1]
The increased integration and interdependence of economies is known as
A
privatisation
B
specialisation
C
protectionism
D
globalisation
D
2.2.1 Globalisation question 2
[Maximum number: 1]
Which one of the following is the most likely reason for increased globalisation?
A
Higher number of tariffs and quotas
B
Lower transportation costs
C
Reduced significance of multinational corporations
D
Increased communication costs
B
2.2.1 Globalisation question 3
[Maximum number: 7]
Question (a)
(a)
Which one of the following is an example of foreign direct investment (FDI)?
A
A Japanese car company buying an Indonesian car company
B
An Indonesian supermarket buying produce from a farm in India
C
A Malaysian gift shop selling souvenirs to a Malaysian tourist
D
An Australian mining company selling coal to an Indonesian power station
[ 1 ]
A
Question (b)
(b)
Global trade reached a record high of $ 29 trillion in 2022. It has continued to grow, although at a slower rate since the global health crisis.
With reference to the data above and your knowledge of economics, analyse the possible benefits for consumers of globalisation.
[ 6 ]
AO2 (3 marks)/AO3 (3 marks)
AO2 and AO3
- Consumers can access a wider range of goods and services from different countries including luxury items, exotic foods and digital products that were previously unavailable or expensive
- Increased competition and economies of scale have led to lower production costs which in turn have reduced prices for many consumer goods, such as clothing, electronics and household items
- As consumers have access to more and cheaper goods, their purchasing power has increased
- This can lead to higher living standards, better health and improved quality of life
- Globalisation has facilitated the transfer of knowledge and technology across borders
- This has led to new innovations, such as smartphones, online entertainment and e-commerce
(6)
Level
Mark
Descriptor
0
No rewardable material.
Level 1
1-2
- Demonstrates basic knowledge and understanding by developing relevant points. Limited application of economic terms, concepts, theories and calculations (AO2).
- Information presented will lack selectivity and organisation. Interpretation of economic information will be limited, with a lack of analysis of issues (AO3).
Level 2
3-4
- Demonstrates partial knowledge and understanding by developing relevant points. Partial application of economic terms, concepts, theories and calculations (AO2).
- Information presented will demonstrate some selectivity and organisation. Interpretation of economic information will be good, with some analysis of issues (AO3).
Level 3
5-6
- Demonstrates clear knowledge and understanding by developing relevant points. Appropriate application of economic terms, concepts, theories and calculations (AO2).
- Information presented will demonstrate excellent selectivity and organisation. Interpretation of economic information will be excellent, with a thorough analysis of issues (AO3).
Question
Number
With reference to the data above and your knowledge of economics, assess how a recession may affect inflation in a country such as Germany.
Indicative content
Mark
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