Question

What is meant by the term ‘globalisation’? Describe the three of movements or flows within international economics exchange.

Answer 1

Answer:

Globalisation means interlinking countries through trade..three types of flows were capital,trade and labour

Answer 2

Goods & Services

Capital & currency

Technology

Explanation:

Globalization is the openness to foreign investment and trade. The main advantages of globalization are:

1. Global market - Industries can sell their finished goods in a wider market than the home market, thus increasing profits.
2. Foreign investment - Inflow of foreign capital results in financial strength and new industries being set up.
3. Technological growth - Transfer of technology from developed countries will result in advancement in quality and improvement in efficiency.

All the above advantages have resulted in improved economy, increased business and reduction of unemployment in the country.