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This powerpoint is purposefully made for iGCSE Economics using the most recent Cambridge syllabus.

It fully covers - 6.2 Globalisation and trade restrictions

6.2.1 Definition of globalisation

6.2.2 Causes and consequences of changes in globalisation
• causes of changes in globalisation:– changes in trade restrictions– changes in transport costs– changes in communication costs– movement of multinational companies (MNCs)
• effects of changes in globalisation on:– international trade– competition– the environment– migration– income distribution– economic development

6.2.3 Role of multinational companies (MNCs)
• MNCs and their advantages and disadvantages to host countries and home countries

6.2.4 Types of trade restrictions / methods of protection
• tariffs
• import quotas
• subsidies
• embargoes

6.2.5 Reasons for trade restrictions
• protect infant (sunrise) industries
• protect declining (sunset) industries
• protect strategic industries
• avoid dumping
• reduce a deficit on the current account of the balance of payments
• raise tax revenue
• restrict the import of demerit goods
• promote environmental sustainability

6.2.6 Consequences of trade restrictions
• impact of trade restrictions on the home country and its trading partners
• advantages and disadvantages of restricting free trade