What are the main causes of globalisation? (8)

Firstly, if a question like this is asked, we want to define the terms in the question. In this case 'Globalisation': which is the process of growing economic integration of the world's economies. When looking at the causes, to dictate how many to state and explain we would look at the marks of the question. So, as it is an 8 marker we want to give 2 causes of globalisation. Firstly, we an look at trade liberalisation. This is the removal of protectionist barriers such as tariffs and quotas. This has been promoted by organisations such as the WTO, who have acted as an arbitrator in trade disputes. Consequently, trade as a percentage of world trade has risen, meaning greater economic integration between countries, thus greater globalisation. Secondly,  the growth of multinational corporations. As MNCs grow, they look to increase both production levels and profit levels. They look to expand further via accessing international markets. They look to cut costs by operating from various countries. This leads to an increase in interchange in technology and intellectual capital, greater economic integration between countries, greater interdependence and greater globalisation.

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Answered by Manav C. Economics tutor

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