EDEXCEL IGCSE ECONOMICS PAPER
2.2 EXAM QUESTIONS AND ANSWERS
100% SOLVED 2025
, Define globalisation - ANSWERSGrowing interconnection of the worlds economy
Interdependence - ANSWERSWhere the actions of one country or large firm will have a
direct affect on others
5 key features of globalisation - ANSWERS1. Free trade (no gov't laws)
2. People are free to live and work in any country they choose
3. There is a high level of interdependence between nations
4. Capital can flow between different countries
5. There is a free exchange of technology and intellectual property across borders.
Reasons for Globalisation - ANSWERS1. Fewer Tariffs and Quotas- restrict the flow of
imports so that domestic industries are protected
2. Reduced cost of transport- goods can be transported easily
3. Reduced cost of communication- Modern computing allows firms to transfer complex
data instantly to any part of the world. This means more people are able to work from
home.
4. Increased significance of multinationals- Many firms want to sell abroad, perhaps
because domestic markets have been saturated. Large MNC's dominate some markets.
This is because they can keep prices low.
Define MNCs - ANSWERSCorporations that operate in many different countries
Define saturated - ANSWERSMarket in which there is more of a product for sale than
people want to buy
Impact of globalisation and global companies on individuals countries - ANSWERSThe
countries where mncs are placed will benefit from globalisation.
- Higher level of GDP ( increased employment and output)
- Living standards increase
- Improves current balance
- New technologies are introduced
- Economics event in one country can have bad effects on other countries.
( interdependence).
Impact of globalisation and global companies on governments - ANSWERS- Increased
tax revenue- improve government services, lower taxes
- Multinationals provided the encouragement and the skills requires to develop new
businesses.
Globalisation can only occur ig government allow it to, for example: - ANSWERS-
Countries cannot trade if governments keep international borders closed
2.2 EXAM QUESTIONS AND ANSWERS
100% SOLVED 2025
, Define globalisation - ANSWERSGrowing interconnection of the worlds economy
Interdependence - ANSWERSWhere the actions of one country or large firm will have a
direct affect on others
5 key features of globalisation - ANSWERS1. Free trade (no gov't laws)
2. People are free to live and work in any country they choose
3. There is a high level of interdependence between nations
4. Capital can flow between different countries
5. There is a free exchange of technology and intellectual property across borders.
Reasons for Globalisation - ANSWERS1. Fewer Tariffs and Quotas- restrict the flow of
imports so that domestic industries are protected
2. Reduced cost of transport- goods can be transported easily
3. Reduced cost of communication- Modern computing allows firms to transfer complex
data instantly to any part of the world. This means more people are able to work from
home.
4. Increased significance of multinationals- Many firms want to sell abroad, perhaps
because domestic markets have been saturated. Large MNC's dominate some markets.
This is because they can keep prices low.
Define MNCs - ANSWERSCorporations that operate in many different countries
Define saturated - ANSWERSMarket in which there is more of a product for sale than
people want to buy
Impact of globalisation and global companies on individuals countries - ANSWERSThe
countries where mncs are placed will benefit from globalisation.
- Higher level of GDP ( increased employment and output)
- Living standards increase
- Improves current balance
- New technologies are introduced
- Economics event in one country can have bad effects on other countries.
( interdependence).
Impact of globalisation and global companies on governments - ANSWERS- Increased
tax revenue- improve government services, lower taxes
- Multinationals provided the encouragement and the skills requires to develop new
businesses.
Globalisation can only occur ig government allow it to, for example: - ANSWERS-
Countries cannot trade if governments keep international borders closed
