This topic accounts for approximately 6% of your exam marks.
new
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New6%
New emphasis in the 2027 syllabus; globalisation, multinational companies and trade restrictions are now grouped as a distinct topic. Guidance based on specimen materials.
Globalisation increases when it becomes cheaper and easier to trade, communicate and move money across borders, and it can slow when those things become harder. The main drivers are:
Changes in . When countries lower tariffs, quotas and other barriers, often through trade agreements, trade between them grows and globalisation deepens. Raising barriers does the reverse.
Changes in transport costs. Container shipping, larger vessels and cheaper air freight have cut the cost of moving goods around the world, making it economic to produce in one country and sell in another. A rise in transport or fuel costs slows this down.
Changes in communication costs. The internet, mobile phones and video conferencing let firms coordinate suppliers, factories and customers across continents almost instantly and very cheaply.
Movement of multinational companies (MNCs). As firms set up operations in more countries, they build global supply chains that tie economies together through trade, investment and the transfer of technology.