Globalisation & Trade Restrictions
International Trade & Globalisation · 2 question types
Exam Frequency Analysis
Past paper frequency (2018 to 2024)
This topic accounts for approximately 6% of your exam marks.
New emphasis in the 2027 syllabus; globalisation, multinational companies and trade restrictions are now grouped as a distinct topic. Guidance based on specimen materials.
A rise in globalisation has wide effects, and most of them cut both ways.
- International trade. Trade grows as barriers fall and supply chains spread across borders, raising output and incomes.
- Competition. Domestic firms face more foreign competition, which can lower prices and raise quality, but can also drive less efficient domestic firms out of business.
- The environment. More production and longer transport chains can raise pollution and emissions, though the spread of cleaner technology can work the other way.
- Migration. Easier movement of people lets workers go where jobs and wages are higher, helping fill labour shortages but also straining housing and services in receiving countries.
- Income distribution. Globalisation has lifted hundreds of millions out of absolute poverty, but within countries it can widen the gap between skilled workers and capital owners, who gain, and low-skilled workers in import-competing industries, who may lose out.
- Economic development. Access to world markets, foreign investment and technology can speed up development in poorer countries, although those that stay dependent on a narrow range of primary exports benefit less.
Discuss whether globalisation benefits a country (8 marks)
What comes up: an 8-mark "Discuss whether or not a country benefits from globalisation." Both sides plus a judgement are required.
Write: Why it benefits: greater trade lets the country specialise and sell to larger markets (1), raising output and incomes (1); more competition lowers prices and raises quality for consumers (1); foreign investment and technology raise productivity and speed development (1). Why it may not: domestic firms unable to compete with imports may close, causing structural unemployment (1); income inequality may widen as skilled workers gain more than the low-skilled (1); longer supply chains and more production can harm the environment (1); the economy becomes more exposed to shocks abroad (1). Judgement: state whether the gains outweigh the costs and why, for example that globalisation tends to benefit a country overall if it can move workers into competitive industries and share the gains widely.
Watch out: a one-sided answer is capped below the top band. Develop each point into a chain rather than listing effects.