Globalisation and Economic Integration

A free trade area gains all the benefits associated with being a member of a customs union while avoiding all the costs associated with being a member of a customs union.

Evaluate this statement.

Globalisation will have an equally beneficial effect on the standard of living in both high-income and low-income countries.

Evaluate this statement.

A free trade area gains all the benefits associated with being a member of a customs union while avoiding all the costs associated with being a member of a customs union.

Evaluate this statement.

Globalisation will help to achieve economic growth in high-income economies and this will automatically improve living standards.

Evaluate this statement.

Evaluate the likely impact of globalisation on a low-income country’s standard of living.

In recent years many countries have joined or established a free trade area (FTA).

Evaluate, with the help of a diagram(s), whether membership of an FTA is always beneficial to a country.

Some high-income countries have introduced a policy of high tariffs on some imports to reduce the negative effects of globalisation on their economies.

With the help of a diagram, evaluate this policy.

Assess the impact of globalisation on the standard of living in low-income countries.

To what extent do you agree with the view that globalisation benefits high-income countries at the expense of low-income countries?

Some developing countries pursue export-led growth and argue that the overall growth of the economy can be generated not only by increasing the amounts of labour and capital but also by expanding exports.

Other developing countries prefer to promote growth by encouraging investment by foreign multinational corporations.

Compare these approaches and assess which is likely to be the more effective.