Edexcel International A Level Economics
Edexcel International A Level Economics Causes and Effects of Globalisation Exam Questions
Free Edexcel International A Level Economics exam questions for Causes and Effects of Globalisation, with a mark scheme for every pack. Covers the meaning and causes of globalisation and its effects on countries, consumers, producers, workers and the environment.
Causes and Effects of Globalisation exam questions
1 question pack of real past exam questions, each with its mark scheme. Do not stop after a few: answer as many as you can without notes, then mark every answer with the mark scheme. The more questions you do, the more quickly you will spot how examiners ask about each idea.
About Edexcel International A Level Economics Causes and Effects of Globalisation
Causes and effects of globalisation opens Unit 4 of Edexcel International A Level Economics. Globalisation is the growing integration and interdependence of economies through trade, capital flows, movement of labour and the spread of technology. You learn what has driven globalisation, including falling transport and communication costs, trade liberalisation and the growth of multinational corporations. You then analyse its effects on developed, emerging and developing economies and on consumers, producers, workers and the environment. This topic sets up the rest of Unit 4, including trade, exchange rates and development. Examiners reward balanced evaluation supported by real examples.
What you need to know
- Meaning of globalisation The process by which national economies become increasingly integrated through flows of goods, services, capital, labour and ideas.
- Causes Improvements in transport (containerisation) and communication (internet), trade liberalisation through the WTO and trading blocs, capital account liberalisation, the growth of multinational corporations, and the opening of economies such as China and India.
- Effects on countries Faster growth for many emerging economies, greater specialisation and access to markets, but increased vulnerability to global shocks, deindustrialisation in some developed economies and loss of policy independence.
- Effects on consumers and producers Lower prices and wider choice for consumers; larger markets and economies of scale for producers, but greater competition.
- Effects on workers and the environment New jobs in emerging economies, but job losses and downward wage pressure for low-skilled workers in developed economies. Environmental costs from transport and production, and concerns about a race to the bottom on standards.
Common mistakes in Causes and Effects of Globalisation
- Describing globalisation only as more trade. It also includes capital, labour, technology and cultural flows.
- Assuming all countries gain equally. Effects differ between and within countries, and some groups lose.
- Ignoring the role of multinational corporations. They are both a cause and a channel of globalisation.
- Listing effects without evaluation. Discuss which effects matter most and for whom.
- Using out-of-date or vague examples. Use specific, accurate examples or speak in general terms.
Try three Causes and Effects of Globalisation exam-style questions
1. State two causes of globalisation. (2 marks)
Show the mark scheme answer
Any two from: lower transport costs such as containerisation; improved ICT; trade liberalisation; growth of multinationals; capital account liberalisation; opening up of emerging economies.
2. Explain two benefits of globalisation for consumers. (4 marks)
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Lower prices because goods are produced where opportunity cost is lowest; wider choice of goods and services; improved quality from greater competition; access to new technology; two benefits developed.
3. Evaluate the effects of globalisation on developing economies. (12 marks)
Show the mark scheme answer
Benefits: access to export markets, FDI, technology transfer, jobs and higher growth; costs: exploitation of low-wage labour, environmental damage, dependence on primary products, vulnerability to global shocks, profit repatriation; evaluation: depends on governance, education and infrastructure; some economies gain much more than others; supported judgement.
Causes and Effects of Globalisation FAQs
What does Edexcel IAL Economics Causes and effects of globalisation cover?
It covers what globalisation means, its main causes, and its effects on countries, consumers, producers, workers and the environment.
Which unit is Causes and effects of globalisation examined in?
It is part of Unit 4, Developments in the global economy.
How should I evaluate globalisation?
Identify the winners and losers, consider the type of economy, and discuss short-run versus long-run effects. Support your judgement with examples.
