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4 International trade and the global economy

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Question 109

An architectural services firm based in Country A is considering opening a design office in Country B. The table shows changes in the conditions faced by the firm.

ConditionYear 1Year 2
Time taken to send a 6 GB design file from Country A to Country B75 minutes3 minutes
Maximum annual investment each firm is permitted to transfer from Country A to Country B£0.5 million£5 million

Which option identifies the two driving factors of globalisation shown in the table and how they could affect the firm's decision?

[1]
A

Improved communication and relaxed controls on moving money, so running and funding an office in Country B becomes easier

B

Improved communication and fewer restrictions on trade, so selling designs to customers in Country B becomes easier

C

Cheaper transport and fewer restrictions on trade, so shipping printed plans to Country B becomes easier

D

Cheaper transport and relaxed controls on moving money, so sending staff and equipment to Country B becomes easier

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4 International trade and the global economy Questions

  1. GCSE
  2. /Economics
  3. /4 International trade and the global economy

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