2.4 Globalisation

globalisation

the process of world economies becoming more interconnected

interconnected

mutually joined or related

exchange rates

the value of one currency in terms of another

currency

the name of the money in a country e.g US Dollars

appreciation

the value of the currency is increasing

depreciation

the value of the currency is decreasing

When there is a weak pound (2)

imports are expensive (fall in demand)

exports are cheap (rise in demand)

When there is a strong pound (2)

imports are cheap (rise in demand)

exports are expensive (fall in demand)

exports

goods that are produced in the UK and are shipped to another country for consumption

imports

goods that are produced in another country and are shipped to the UK for consumption

domestic good

a good that is produced in the UK

raw materials

Unprocessed natural products used when making products

causes of globalisation (4)

trade agreements
reduced transport costs
technology improvements
communication improvements

impacts of globalisation (4)

increased volume of trade amongst countries
more movement of labour across borders
rising incomes leading to rising demand
rise in the number of MNCs